- Manufacturing production increases by 0.2% in August
- Industrial production increases by 0.4%; Hurricane Ida Hurts Mining
- Import Prices Fall 0.3% in August; up 9.0% year on year
WASHINGTON, September 15 (Hfrance.fr) - Production in American factories slowed down more than expected in August due to disruption from Hurricane Ida and continued shortages of raw materials and labor as the COVID-19 pandemic continues.
Improvement is likely with further data Wednesday showing a sharp acceleration in a measure of factory activity in New York State this month against a backdrop strong growth in orders and shipments of goods. Demand is fueled by companies desperate to replenish their inventories afterthe sharp drop in inventories in the first half of the year.
"The future growth of the manufacturing sector is likely to be supported by low inventories ", a said Rubeela Farooqi, chief US economist at High Frequency Economics in White Plains, New York. "But supply issues and shortages remain a constraint for now that prevent a stronger rebound.
Manufacturing output rose 0.2% last month, the Federal Reserve said on Wednesday. Data for July has been revised to show a production increase of 1.6% instead of 1.4% as previously reported.
Economists surveyed by Hfrance.fr had forecast that manufacturing output would gain 0.4%.
The Fed estimated that Hurricane Ida, which devastated US offshore energy production and suddenlyelectricity in Louisiana at the end of August, subtracted 0.2 percentage point from manufacturing output. The hurricane resulted in the closure of factories for petrochemical calluses, plastic resins and petroleum refining
The production of the plant is more than 1.0% to its pre-pandemic level.
The production of auto factories edged up 0.1%. The shortage of raw materials, most evident in the automotive sector, has been compounded by the latest wave of infections caused by the Delta variant of the coronavirus, mainly in Southeast Asia, as well as congestion at ports in China.
General Motors Co (GM.N) said it will cut production at its factories in Indiana, Missouri and Tennessee this month due to shortage continue of electronic chips. Ford Motor Co (FN) also decreases production of trucks.
Excluding automobiles, manufacturing output increased by 0.2% in August.
Wall Street stocks were trading higher. The dollar slipped against a basket of currencies. US Treasury prices were mixed.
IMPORT PRICES ARE DROPPING
In a separate report released on Wednesday, the New York Fed said its "Empire State" index on current trading conditions jumped to 34.3 this month from 18.3 in August. -above zero suggests an expansion of regional trade activity.
But challenges on the supply side remained, measuring lead times. delivery reaching a record level.Very optimistic that conditions would improve over the next six months, with plans for capital and technology spending increasing dramatically.
"Optimistic demand for goods, rising business investment and rebounding demand for overseas are expected to maintain healthy growth through 2022 " said Oren Klachkin, chief US economist at Oxford Economics in New York City. .
"However, constant supply chain and hiring challenges will simultaneously limit expansion, and these headwinds will not decrease significantly until the COVID crisis is effectively contained at home and abroad. "
gain d ' August in manufacturing g production and a 3.3% rebound in utilities increased industrial production by 0.4%. Industrial production rose 0.8% in July. Mining production fell by 0, 6%, reflecting hurricane disruption to oil and gas extraction in the Gulf of Mexico.
Capacity utilization for the manufacturing sector, a measure of how well businesses are using their resources, rose 0.1 percentage point to 76.7% in August. Overall capacity use for the industrial sector increased by 0.2 percentage point to 76.4%. It is 3.2 percentage points lower than its 1972-2020 average.
U.S. central bank officials tend to look at measures of Capacity utilization for signals of how sluggish the economy is - how far does growth have room for growth before it turns inflationary.
Inflation seems to have peaked. A third report from the Ministry of Labor showed thatImport prices fell 0.3% last month after rising 0.4% in July. The first of Since October 2020, the year-over-year increase was reduced to 9.0%, from 10.3% in July.
The The report follows Tuesday's announcement that consumer prices registered their smallest gain in seven months in August. Fed Chairman Jerome Powell has firmly maintained that high inflation is transient. learn more
Soaring prices focused on used cars and trucks, as well as services in industries hardest hit by the COVID-19 pandemic, are slowing. But strained supply chains are likely to maintain supply. inflation at a high level for a while.
Imported fuel prices fell 2.3% last month after risingincreased 3.0% in July. Oil prices fell 2.4%, while the cost of imported food rose 0.6%.
Excluding fuel and food, import prices fell 0.2%. These so-called "core" import prices rose 0.1% in July. The prices of imported capital and consumer goods, excluding automobiles, increased slightly.
"Inflation has taken a little breather in August, but the race or marathon isn't over yet, "said Jennifer Lee, Senior Economist at BMO Capital Markets in Toronto. Reporting by Lucia Mutikani; Editing by Andrea Ricci
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