WASHINGTON -- U.S. industrial production jumped a solid 0.9 percent in October as factory activity recovered from the effects of Hurricanes Harvey and Irma.
Meanwhile, the number of Americans filing applications for unemployment benefits edged up again last week to a still-low 249,000, but the overall number of people collecting unemployment benefits fell to a near 44-year low, further evidence that Americans enjoy job security.
The Federal Reserve said Thursday that manufacturing activity surged 1.3 percent last month. Many of the gains came from a sharp increase in the production of chemical, petroleum and coal products. Motor vehicles and metals also posted decent gains. But factories are also benefiting from favorable conditions around the world.
"The pickup in global growth and the weaker dollar have triggered a broader turnaround in the prospects for the manufacturing sector," said Paul Ashworth, chief U.S. economist at Capital Economics.
Mining activity slipped 1.3 percent in October as Hurricane Nate caused a brief decline in oil and gas drilling. Production at utilities rose 2 percent.
Applications for jobless aid rose by a seasonally adjusted 10,000 last week after a similar increase in the previous week, the Labor Department reported Thursday. The four-week average, which smooths out week-to-week volatility, rose to 237,750, an increase of 6,500.
But the number of people receiving benefits fell to 1.89 million, a drop of 44,000, putting this figure at the lowest level since Dec. 29, 1973.
Applications for unemployment benefits are a proxy for layoffs. The level of unemployment benefits has been below 300,000 for more than two years, a stretch not equaled in more than four decades. The government reported that employers added 261,000 jobs in October as many businesses in Texas and Florida reopened after being hit by devastating hurricanes. The U.S. unemployment rate last month fell to 4.1 percent, the lowest level in nearly 17 years.
Over the past year, industrial production has increased 2.9 percent.
The Fed report is among the many indicators that factories are roaring back in recent months.
Over the past year, manufacturers have added 156,000 jobs. That's the strongest annual growth since the middle of 2015.
Manufacturing hit a rough patch about two years ago when a strengthening dollar hurt exports and falling energy prices led to fewer orders for pipeline and equipment. But manufacturing has been steadily rebounding this year amid a stronger global economy.
The Institute for Supply Management, a trade group of purchasing managers, said recently that its manufacturing index dipped to 58.7 in October from a 13-year high of 60.8 in September. Anything above 50 signals that U.S. factories are expanding. Manufacturers have reported expansion for the past 14 months.
The weekly unemployment benefits report suggests that the economic recovery that began in mid-2009, now the third-longest in U.S. history, is moving forward. The economy, as measured by the gross domestic product, grew at a 3 percent rate in the July-September quarter after a 3.1 percent pace in the second quarter, the first back-to-back gains of 3 percent or better in three years.
Business on 11/17/2017