According to Royal Bank of Canada (RY, RY.TO) the
stronger-than-expected November payroll employment report "bodes
well" for industrial production (
) to rebound 0.7% in the month following a 0.1% decline in October.
It says the 0.5% gain in the index of aggregate weekly hours for
manufacturing is expected to be mirrored in the manufacturing
component of IP rising by a similar amount. Though motor vehicle
production dropped 0.7% in the month, the increase in the ISM
manufacturing index to 57.3 in November from 56.4 in October
implies more than offsetting strength elsewhere in the sector, it
says. RBC adds a jump in electricity usage in November suggests
further support from a 2.4% gain in utilities output that will
more-than-reverse the 1.1% drop in October. Also, a recovery in
aggregate hours worked in the mining sector in the month points to
a modest rebound in mining output in November following a sizeable
1.6% drop in October. The robust increase in IP contributes to the
capacity utilization rate rising to 78.6% from 78.1% in October,
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