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December U.S. Factory Production Climbed Most in a Year

January 19, 2012, 07:30 AM
By
Topic: Economy

Bloomberg reported U.S. factories produced more computers, cars and construction material in December as manufacturing remained at the center of the expansion.

According to the report, output climbed 0.9% last month, the biggest gain since December 2010, according to Federal Reserve data.
 
The report states gains in consumer and business spending, combined with lean inventories, may prompt factories to continue to boost payrolls and hours, bolstering economic growth. Additionally, more demand from emerging markets may help shield American industry from a slowdown in exports to Europe as the region’s financial crisis and a weaker euro threaten to restrain sales.
 
“Manufacturing remains an engine of growth,” said John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC in Boston, who accurately forecast the December gain. “Manufacturing has benefited from exports to emerging markets. The more resilient those economies are, the better it is for U.S. manufacturing.”

 

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