U.S. Industrial Production Continues Expansion In August
The August reading or manufacturingwas up just 0.1%,“held back” by a 5% decline in motorvehicles and parts,the Fed said. It keptexpanding in August,the Federal Reservesaid September 15, beating expectations even though the pace of the increaseslowed due to sluggish manufacturing growth.
Overall industrial production rose by 0.4%, up from a revised 0.7% a month earlier, the Federal Reserve announced ina statement. This was above the median expectation of economists surveyed by MarketWatch.
The August reading for manufacturing was up just 0.1%, “heldback” by a 5% decline in motor vehicles and parts, the Fedsaid. This marked a sharp turnaround from July, when a jump in motor vehicle production helped spur a 0.4% increase in manufacturing, pushing industrial production back into positive territory. “Overall industrial production rose morethan expected in August but manufacturing output matched consensus expectations,” High Frequency Economics Chief U.S. Economist Rubeela Farooqi wrote in a note to clients. “Higher borrowing costs and weaker demand for goods are headwinds for manufacturing,” she added.
Factory output rose by 0.6%, while the index for mining was up 1.4% from a month earlier. Year-on-year, overall industrial production expanded by 0.2%.The figures will give the Fed additional information ahead of its interest rate decision next week, as it weighs another hike to its key lending rate to cool above-target inflation.
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