Production rates at American factories barely rose in August based on new data from the Federal Reserve released September 15.
U.S. manufacturing outputs grew by 0.1% in August while production levels fell by 0.6% year-on-year.
The automotive industry experienced a 5% decline in vehicle outputs and component production following a 5.1% increase during July. The recent UAW union strikes against GM, Ford and Stellantis could undercut manufacturing activity, according to Reuters.
The Institute for Supply Management found that American factory activity contracted for a tenth straight month in August, albeit at a slower pace than previously recorded.
Across the rest of the country, factory outputs increased by 0.6% in August when excluding the automotive industry.
The production of primary metals, aerospace components, transportation equipment and machinery all grew. However, the manufacturing of electrical appliances, nonmetallic mineral products, fabricated metal products and wood products declined.
Mining outputs grew by 1.4% after the industry experienced a 0.2% decline in July. Utilities production also increased by 0.9%.
Overall industrial production rates grew by 0.4% last month. Simultaneously, capacity utilization for the industrial sector grew to 79.7% from 79.5% in July, which aligns with averages seen from 1972 to 2022.
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