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U.S. Factory Output Slows
Manufacturing output in the U.S., which has grown 3.4% in the past 12 months, advanced only 0.2% in October, according to the Federal Reserve.
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Manufacturing output in the U.S., which has grown 3.4% in the past 12 months, advanced only 0.2% in October, according to the Federal Reserve.
The central bank notes that the automotive sector again cut production, this time by 1.2%. Output fell 1.9% in September and 7.2% in August.
But analysts anticipate steady growth in passenger vehicle sales well into next year. They also note that carmakers have been determined to control dealer inventories by not overproducing.
U.S. assembly plants have been operating above 90% of capacity this year, notes Jeff Schuster, senior vice president of forecasting for LMC Automotive. He says unusually high output in November 2013 will result in a dip in year-on-year production this month.
But Schuster also predicts steady growth in North American vehicle production over the next five years. He expects output, which surpassed 16 million last year for the first time since 2002, will climb from 16.8 million this year to 19.2 million by 2020.
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