On Tuesday, the US Federal Reserve data on US manufacturing activity had largely contradicted a growing pessimism over the recovery of the world’s No. 1 economy from a pandemic induced fiscal slump as US manufacturing output had stepped up more than anticipated last month, mostly buoyed up by a riant rise in motor vehicle production, stoking hopes of a quicker-than-expected recovery amid rising optimisms over a havoc-scale Govt.
stimulus package promised by the US President-elect Joe Biden earlier this month. Besides, amid competing narratives on whether the US economy has been en route towards a faster rebound, latest US Fed data came forth a day after Beijing had revealed that its manufacturing output had surged by the steepest pace in November in more than 20 months, stoking prospects of a pluperfect economic landscape by the second quarter of 2021 as pandemic vaccine rollouts in a majority of G20 economies has been uplifting business sentiment, suggested analysts.
Nonetheless, several Wall St. analysts had also held onto their dovish stance about a faster economic recovery given the scale of uptick in pandemic cases across the United States which had been slowing down hiring and leading to an upsurge in lay offs over the recent past.
According to US Federal Reserve data revealed earlier in the day, US manufacturing output grew by 0.8 per cent in November that followed an upsurge of 1.1 per cent in October compared to the same time a year earlier.
US factory activity hovers 3.8% below pre-pandemic level
Aside from that, Tuesday’s US Fed data had also added that the US factory production remained only 3.8 per cent below from its pre-pandemic level, while motor vehicle production roared back intransigently in November with a rebound of 5.3 per cent following three consecutive months of declines.
Meanwhile, citing that the US manufacturing activity would likely to take a much-softer header that initially fretted amid a pandemic resurgence at large, a Chief International economist at ING in New York, James Knightly said following the Fed data, “COVID-19 containment measures are likely to exert a heavy economic toll over the next few months and the manufacturing sector won’t be immune, but it is going to be far less directly impacted than consumer services in big cities. ”