Industrial production exceeds expectations in November

Latest reading: Industrial production rose 0.8% in calendar-adjusted month-on-month terms in November, following a 2.0% increase in the previous month. November’s reading confounded market expectations of a contraction. Relative to the previous month's figures, readings in November softened for mining and quarrying (-3.7% on a seasonally adjusted month-on-month basis vs +11.3% in October), energy (-7.8% vs +2.7% in October) and the construction sector (-0.8% vs +4.0% in October). In contrast, the reading for manufacturing production improved in November (+2.1% vs +1.4% in October). On a calendar-adjusted year-on-year basis, industrial production was up 0.8% in November, following 1.0% growth in the previous month.

Panelist insight: Commenting on the reading, Niklas Garnadt and Giovanni Pierdomenico, analysts at Goldman Sachs, stated: “Today's data on IP and yesterday's manufacturing sales data confirmed that industrial activity gained momentum in Q4 following a weak Q3. Yesterday's strong manufacturing orders print for November and the +3.2% rise in truck toll mileage reported today for December suggest that industrial activity likely ended the year on a strong footing, despite the recent softening in survey data, supporting our expectations for a pick-up in growth in 2026.”

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