Weakening global backdrop and the stronger dollar
The Federal Reserve said Monday that factory production rose 1.1 percent last month, up from a 0.4 percent improvement in October. Manufacturing output has risen 4.8 percent over the past 12 months. It's now above the previous high set just before the downturn began in December 2007.
Total industrial production grew 1.3 percent in November, rising in part as utilities faced additional demand because of colder-than-usual weather. Mining production slid 0.1 percent last month.
The growth points to a U.S. manufacturing base that has been insulated from a turbulent global economy.
"The strengthening in domestic demand is offsetting the effects of the weakening global backdrop and the stronger dollar," said Paul Dales, a senior U.S. economist at Capital Economics.
Japan has slipped into recession. Tepid growth has trapped much of Europe. China, the world's industrial behemoth, is trying to tighten credit and reform its opaque financial sector. The rising value of the dollar against other currencies makes U.S. products more expensive abroad, meaning that U.S. manufacturers will likely need to rely on domestic demand for growth.
The U.S. economy has thrived despite the global slowdown.
Strong domestic sales helped boost auto production 5.1 percent last month. Motor vehicles sold in November at an annualized clip of 17.2 million, a 4.6 percent increase from the prior year, according to Autodata Corp. The surge in production snapped three previous months of declining auto output.