US in­dus­trial pro­duc­tion falls

Iran Daily - - Tse & Global Economy -

US in­dus­trial out­put fell in Au­gust for the first time since Jan­uary as Hur­ri­cane Har­vey bat­tered oil, gas and chem­i­cal plants along the Gulf Coast and a cool sum­mer sapped util­ity de­mand in the east, the Fed­eral Re­serve said.

Over­all in­dus­trial pro­duc­tion fell 0.9 per­cent over the month af­ter a July in­crease re­vised up­ward to 0.4 per­cent, ac­cord­ing to Reuters.

The Fed, us­ing a com­bi­na­tion of high-fre­quency plant out­put data and eco­nomic mod­el­ing, at­trib­uted about 0.75 per­cent­age point of the de­cline to storm ef­fects that “tem­po­rar­ily cur­tailed drilling, ser­vic­ing, and ex­trac­tion ac­tiv­ity for oil and nat­u­ral gas”.

Econ­o­mists polled by Reuters had still ex­pected a 0.1 per­cent in­crease in in­dus­trial out­put. The US cen­tral bank’s mea­sure of the in­dus­trial sec­tor com­prises man­u­fac­tur­ing, min­ing, and elec­tric and gas util­i­ties.

Though Har­vey was a ma­jor force in the de­cline, help­ing push down min­ing out­put by 0.8 per­cent, other sec­tors con­trib­uted.

The out­put of con­sumer goods fell 0.7 per­cent as a rise in pro­duc­tion of con­sumer durables was off­set by de­clines in non­durables and con­sumer en­ergy prod­ucts. Pro­duc­tion of mo­tor ve­hi­cles and auto parts rose 2.2 per­cent.

Utiliza­tion of fac­tory ca­pac­ity fell 0.8 per­cent­age point to 76.1 per­cent, com­pared to a re­vised up­ward fig­ure of 76.9 per­cent in July, nearly four per­cent­age points be­low the long run av­er­age.

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