WASHINGTON, September 15 (Hfrance.fr) - Production at US factories slowed more than expected in August due to disruptions caused by Hurricane Ida and persistent shortages of raw materials and workforce as the COVID-19 pandemic extends.
Manufacturing output rose 0.2% last monthr, 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 predicted that manufacturing output would gain 0.4%.
The commodities crisis has been worsened by the latest wave of infections caused by the Delta variant of the coronavirus, mainly in Southeast Asia, as well as congestion in ports in China.
General Motors Co (GM.N) has announced that it will cut production at its factories in Indiana, of Missouri and Tennessee this month due to a continuing shortage of microchips. Ford Motor Co (FN) also decreases truck production.
Part of the manufacturing slowdown reflects the shift in spending to services from goods due to COVID-19 vaccinations. The manufacturing sector, which represents 11.9% of the US economy, remains supported by companies desperate to rebuild their inventories after the sharp drop in inventories in the first half of the year. Report by Lucia Mutikani; Edited by Paul Simao and Andrea Ricci
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