U.S. industrial production increased 0.4% in December 2011 compared to the prior month and remained 2.9% over December 2010. Compared to November 2011, the nation’s factory output improved by 0.9% while mining output increased by 0.3%. Overall industrial production has revealed gains for 10 consecutive quarters, with fourth quarter 2011 reflecting a 3.1% annual increase.
The Purchasing Managers Index (PMI) continued to exhibit growth in December, with a reading of 53.9% compared to 52.7% in the previous month. Nine out of 18 manufacturing industries reported growth including computer & electronic products; machinery; petroleum & coal products; and primary metals. Those reporting contractions included chemical products; electrical equipment, appliances & components; fabricated metal products; plastics & rubber products; and transportation equipment.
The Consumer Confidence Index advanced by 9.3 points in December, registering 64.5 as consumers for the second consecutive month revealed optimism regarding near-term economic improvements, including the job market.
Initial data indicates that new orders for manufactured durable goods increased 3.0% in December to $214.5 billion, largely due to a $3.0 billion improvement in transportation equipment. December shipments of manufactured durable goods, according to preliminary estimates, increased 2.1% from November, to $207.3 billion, led by a $2.2 billion improvement in primary metals.
The gross domestic product (GDP), according to preliminary estimates, grew at an annual rate of 2.8% in the fourth quarter of 2011 compared to 1.8% in the third quarter. The improvement is attributed to numerous factors including exports, fixed investment, and personal expenditures.
The chemical and allied products producer price index declined to 272.8 in December 2011 from 276.7 in November 2011.
