Thu, March 28, 2024

Production at U.S. factories weakened in August 

Production at U.S. factories weakened in August 

Production at U.S. factories slowed more than anticipated in August. Hurricane and lingering shortages of raw materials and labor, as well as coronavirus pandemic, hit America.

The Federal Reserve stated on Wednesday that manufacturing output rose 0.2% in August. Data for July was revised to show production rising 1.6% instead of 1.4%, as previously announced.

Meanwhile, economists polled by Reuters had forecast manufacturing production would rise 0.4%.

Hurricane Ida devastated U.S. offshore energy production in Louisiana at the end of the previous month.

The Federal Reserve estimated that it subtracted 0.2 percentage point from manufacturing output. Ida led to plant closures for plastic resins, petrochemicals, and petroleum refining.

Moreover, factory production is 1% above its pre-COVID level, whereas output at auto plants gained 0.1%. The latest wave of infections driven by the Delta strain of the coronavirus worsened the raw materials crunch.

General Motors announced it would cut production at its plants in Missouri, Indiana, and Tennessee this month because of an ongoing microchip shortage. Additionally, Ford Motor Co is also reducing truck production.

August’s increase in manufacturing output and a 3.3% recovery in utilities lifted industrial production by 0.4%. Moreover, industrial output grew 0.8% in July. Meanwhile, mining production fell by 0.6% following hurricane Ida as it disrupted oil and gas extraction in the Gulf of Mexico.

Ameasure of how fully firms use their resources surged 0.1% to 76.7% in August

Furthermore, capacity utilization for the manufacturing sector, a measure of how fully companies use their resources, surged 0.1% to 76.7% in August. Overall capacity use for the industrial sector gained 0.2% to 76.4%. It is 3.2% below its 1972-2020 average.

Inflation seems to have peaked. A report from the Labor Department revealed import prices fell 0.3% last month after rising 0.4% in July. The first contraction since October 2020 lowered the year-on-year rise to 9.0% from 10.3% in July.

Remarkably, the consumer prices posted their smallest rise in seven months in August. Federal Reserve Chairman Jerome Powell has maintained that high inflation is short-lived.

Imported fuel prices dropped 2.3% last month after rising 3.0% in July. Petroleum prices fell 2.4%, whereas the cost of imported food advanced 0.6%.

Import prices, excluding fuel and food, declined by 0.2%. Core import prices increased 0.1% in July. Additionally, there were small increases in the prices of imported capital goods and consumer goods.

YOU MAY ALSO LIKE

Ford

Quick Look: CVA Family Office LLC snaps up 4,559 shares of Ford

The government aspires to make Portugal Europe's top producer of prime lithium for electric car batteries.

Quick Look: Atlas Lithium signs investment and offtake agreements with Mitsui. Mitsui

Stocks and various factors, Baltimore

Quick Look: The Francis Scott Key Bridge in Baltimore collapsed after a

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in