Nov 17, 2021 - Economy & Business

Chip gridlock loosens

Data: Federal Reserve via FRED; Chart: Axios Visuals
Data: Federal Reserve via FRED; Chart: Axios Visuals

The chip shortage is starting to abate — at least a little.

Driving the news: Manufacturing of motor vehicles jumped 11% in October, according to industrial production numbers out Tuesday from the Federal Reserve.

The big picture: GM, for one, said it would reopen all its North America plants in November, so output could improve again this month.

Yes, but: Don't expect a full recovery any time soon.

  • Many of those factories will be running well below full capacity, and industry estimates still imply the chip shortage will last well into next year, analysts at Capital Economics wrote in a research note.
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