WASHINGTON (Reuters) – U.S. manufacturing output increased more than expected in November, boosted by motor vehicle production, though momentum could slow as a fresh outbreak of COVID-19 infections keeps workers at home and temporarily shuts down factories.
Other data on Tuesday suggested that a benign inflation environment could persist for a while, with import prices barely rising last month even as the dollar has weakened against the currencies of the United States’ main trade partners.
Strong production at factories is defying signs of a slowdown in the economy’s recovery from the coronavirus recession, underscored by rising layoffs. Retail sales likely declined in November for the first time since April, according to a Reuters survey of economists. November’s retail sales report is scheduled to be released on Wednesday.