WASHINGTON—Production at U.S. factories rebounded more than expected in October as the drag from Hurricane Ida faded and motor vehicle output picked up, but manufacturing continues to be constrained by shortages of raw materials and labor. Manufacturing output surged 1.2 percent last month to its highest level since March 2019, after falling 0.7 percent in September, the Federal Reserve said on Tuesday. Economists polled by Reuters had forecast manufacturing production rising 0.7 percent. Output increased 4.5 percent compared to October 2020. Manufacturing, which accounts for 12 percent of the U.S. economy, is being underpinned by businesses desperate to rebuild depleted inventories. Spending shifted to goods from services over the course of the COVID-19 pandemic, straining global supply chains. Raw materials such semiconductors are in short supply. Workers are also scarce, hampering the delivery of materials to factories as well as the shipment of finished goods to markets. Even with spending …
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