Manufacturing shows little momentum in November
U.S. factory production was flat in November, signaling continued weakness in the manufacturing sector as declines in vehicle output offset gains elsewhere. Data released by the :contentReference[oaicite:0]{index=0} showed no monthly change in manufacturing activity after a 0.4% contraction in October, matching economists’ expectations.
On an annual basis, factory production was still higher, rising 1.9% compared with November last year. The publication of the figures was delayed due to the recent 43-day federal government shutdown.
Auto sector weighs on overall output
Motor vehicle production declined 1.0% in November, following a sharp 5.1% drop in October. The slowdown came after a surge in electric vehicle sales during the third quarter, when consumers rushed to buy ahead of the September 30 expiration of federal tax credits.
When excluding motor vehicles, factory output edged up 0.1%, suggesting modest underlying resilience despite broader headwinds. Manufacturing activity has struggled to gain traction as tariffs introduced by President Donald Trump continue to raise costs for producers reliant on imported materials, even as they support sectors such as primary metals.
Industrial production posts modest gains
Beyond factories, mining output increased 1.7% in November, rebounding from a decline in the previous month. Overall industrial production rose 0.2% after slipping in October and was up 2.5% year over year.
Despite these gains, the manufacturing sector remains under pressure. Factory employment has fallen by roughly 63,000 jobs so far this year, highlighting that a broad-based industrial recovery has yet to take hold.
