US industrial production rebounds after auto strike
US industrial production returned to growth in November, with manufacturing output buoyed by a motor vehicle bounceback following the end of auto workers strikes, the Federal Reserve said on Friday. The United Auto Workers (UAW) union reached agreements to end its sprawling six-week strike in late October, after reaching deals with Detroit's "Big Three" automakers over better pay and working conditions. The new contracts, which were ratified a few weeks later, ensure that auto workers at Ford, General Motors and Stellantis will receive the most generous pay increases in decades. US industrial production rose by 0.2 percent in November, up sharply from a revised decline of 0.9 percent in October, the US central bank added in a statement. This was in line with the market consensus, according to Briefing.com. Manufacturing output rose 0.3 percent, buoyed by a 7.1 percent surge in motor vehicles and parts production, "following the resolution of strikes at several major automakers," the Fed said. The rebound in motor vehicle production contributed to "most areas of strength," the Fed said, pointing to a 7.5 percent increase in the index for automotive products, and a 3.5 percent gain in consumer durables. Meanwhile, the production of nondurable consumer goods decreased 0.8 percent, underscoring the ongoing challenges that producers face. "Higher borrowing costs and weaker demand for goods are headwinds for manufacturing," High Frequency Economics chief US economist Rubeela Farooqi wrote in a note to clients. Pantheon Macroeconomics senior US economist Kieran Clancy added: "We continue to see little sign of any emerging rebound in the industrial sector." "Manufacturing activity is largely determined by the strength of domestic capital spending and external demand, both of which are depressed," he wrote in an investor note. (AFP)