Data from the Federal Reserve released on Wednesday showed US factory output increased by just 0.2% in August, slower than July’s 1.6% and analysts’ expectations for 0.4% growth. According to the Fed, Hurricane Ida subtracted 0.2 percentage points from the US factory production. Refineries and plastic and chemical plants were forced to shut due to the storm in late August, with some of them remaining offline as of Thursday. Despite the slow growth, US manufacturing output was 1.0% above its pre-pandemic level.
Production in the auto sector edged up 0.1%, capped by a raw material crunch. General Motors Co said it would reduce production at its plants in Missouri, Indiana, and Tennessee in September due to an ongoing semiconductor chip shortage. Ford Motor Co is also cutting truck production. Excluding autos, US factory production rose 0.2% in August. Capacity utilization for the manufacturing sector inched up 0.1 percentage point to 76.7% last month.
Separately, the Labor Department reported that import prices eased 0.3% in August after rising by 0.4% in July. That marks the first decline since October 2020. Imported fuel prices dropped 2.3% last month, following an increase of 3.0% in July. Petroleum prices fell 2.4%, while the cost of imported food increased by 0.6%. The core import prices, which exclude fuel and food, fell 0.2%, reversing a 0.1% gain in July.
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Published on September 17, 2021 9:34 AM (GMT+8)Last Updated on September 17, 2021 9:34 AM (GMT+8)
