U.S. factories humming at highest levels in two years

It’s being reported far wide that rising domestic manufacturing output will drive the U.S. economic recovery forward in 2011. Further supporting this view is a staff-written report posted on IndustryWeek.com today stating that, according to the Federal Reserve, the U.S. factory operating rate has reached its highest level in two years.

Per the article, a report released today by the Fed shows manufacturing production increased 0.3% in November. That jump-up followed a decline of 0.2% in October.

What’s more, noted the IW piece, the “factory operating rate moved up to 72.8%, its highest level in more than two years but still well below its long-run (1972 to 2009) average of 79.2%.”

The reporters also noted that gains among durable goods were “particularly broad-based; only the production of motor vehicles and parts decreased substantially.” Excluding motor vehicles and parts, overall factory output advanced 0.7%.