Manufacturing output increased in November 2024 (0.2 percent), buoyed by a striking rebound in transport equipment (3.8 percent). Motor vehicles, trailers, and semi-trailers soared (5.8 percent), while other transport equipment also recovered (2.6 percent). However, food products and beverages continued their downward trajectory (minus 0.7 percent), and machinery and equipment fell back (minus 0.7 percent).

Over the year, manufacturing output dipped by 1.4 percent, weighed down by transport equipment (minus 5.3 percent), driven mostly by motor vehicles (minus 13.4 percent). Machinery and equipment also slipped (minus 3.1 percent), as did other manufacturing industries (minus 0.8 percent). Nonetheless, certain segments grew: mining, quarrying, energy, and water supply (1.7 percent), as well as food and beverages (1.0 percent).

High electricity and gas prices have hammered energy-intensive industries. Compared to Q2 2021, these sectors remain significantly below pre-spike levels: basic iron and steel (minus 26.0 percent), glass products (minus 20.2 percent), basic chemicals (minus 16.6 percent), and pulp and paper (minus 11.9 percent). These cost pressures and revised data further dampened October's numbers, highlighting ongoing challenges.

Overall, November's modest improvement cannot mask broader declines. While transport equipment offered a short-term lift, high energy costs and continued dips in key sectors underscore the hurdles the manufacturing industry still faces, leaving the RPI at 11 and the RPI-P at 13. This means that economic activities, in general, are ahead of market expectations.

Industrial production measures the physical output of the nation's factories, mines and utilities. Manufacturing is seen as the best guide to underlying developments as some sectors can be very volatile and cause misleadingly large short-term swings in total industrial production.

Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.