Business & Investment

U.S. factory production hit by Hurricane Aida

Numbers: US industrial production increased 0.4% in August after a revised 0.8% increase last month. The Federal Reserve reported Wednesday.

According to a Wall Street Journal survey, this profit was below economists’ expectations of 0.5%.

The Federal Reserve Board said the end-of-month shutdown associated with Hurricane Aida curtailed production by 0.3 percentage points.

The occupancy rate rose to 76.4% in August, the highest rate since December 2019. Occupancy rates reflect restrictions on the operation of factories, mines and utilities in the country. It is still below levels that could increase production costs and prices.

Big picture: This is the sixth consecutive profit of industrial production. However, production has not yet exceeded its pre-COVID peak. Economists say the main problem with this sector is the inability to meet all demand.

Important details: Manufacturing in August rose 0.2%. Car production, which is volatile this year, fell by only 0.1%.

Utility production increased 3.3% in August after a 4% decrease in the previous month.

What are they saying? “Semiconductor shortages and port unloading and maritime delays will continue to hamper manufacturing production,” said Thomas Symons, Jeffreys economist.

Market reaction: stock
+ 0.27%

+ 0.26%

It was higher at the opening on Wednesday as concerns over the Chinese economy were offset by strong US factory data.

U.S. factory production hit by Hurricane Aida U.S. factory production hit by Hurricane Aida

Back to top button