US industrial production growth slows, up 0.4 per cent in August

by   |  VIEW 421

US industrial production growth slows, up 0.4 per cent in August

On Tuesday, the US Federal Reserve had said in a statement that the US industrial production had shown a decent uptick in August, but in comparison to the havoc-scale gains of June and July, when the pandemic-scarred industries were back into the businesses, August gains had been much-weaker than anticipated, portraying a bleaker outlook on US industrial activities amid what analysts were contemplating as a second wave of pandemic outbreak.

In point of fact, according to Federal Reserve’s Tuesday’s statement, America’s Industrial production had been edged higher by 0.4 per cent last month, much weaker than the gains of 6.1 per cent in June and 3.5 per cent in July while the US industrial sector had been coming back to life following the pandemic driven forced business closure.

US industrial activities rise, but paces of growth added to grudges

Apart from that, data released from the US Fed earlier on the day had also revealed that the manufacturing activity had surged by 1 per cent last month, however, mining activities including oil and natgas exploration had taken a header of 2.5 per cent, while the country’s utilities production had been down by 0.4 per cent compared to the same time a year earlier.

More importantly, although the August gains in US Industrial Activities had marked up the index’s fourth straight month of increases in a row that followed a near standstill of the US business activities during March and April, yet taking account of the Summer gains, the US industrial production had still been 7.3 per cent below from its pre-pandemic level.

Meanwhile, referring to a cautiously optimistic outlook on US Industrial activities over the coming months as progresses in pandemic vaccine trials would likely to enliven the business investments and factory activities in the United States, a chief US economist at High Frequency Economics, Rubeela Farooqi said following the release of US Fed data, “Output will continue to benefit from fuller re-openings. However, weak demand and virus outbreaks that can interrupt activity remain a threat going forward.