US Federal Reserve had issued a statement on Friday saying that the United States’ industrial production had suffered its first decline since a staggering drop of 12.7 per cent in April during the peak of the pandemic outbreak in the United States, suggesting a likely pause in US recovery from the pandemic-driven slump.
In point of fact, Friday’s US Federal Reserve data on US factory output had laid out the leanest showing since Spring as beforementioned, while analysts were quoted saying a 0.6 per cent drop in US industrial outputs last month could lead to a faltering of the United States’ economic recovery as a second wave of pandemic outbreak appears to be brewing in the densely populated US cities, eventually leading to a decline in business expenses amidst a historically higher level of lay-offs.
US factory output suffers first decline since April
Apart from that, according to the US Federal Reserve’s factory output data for September, overall industrial production retreated 0.6 per cent, while the manufacturing output fell by 0.3 per cent last month.
Besides, mining outputs that include oil and natgas, fell by 5.6 per cent last month compared to the same time a year earlier, though utilities’ production rose by 1.7 per cent. More importantly, September reading of US industrial output had been the first decline after four straight months of gains as a second wave of pandemic outbreak had begun to take a heftier toll on business investors’ morale, though the US factory output had recovered more than half of the losses it had to stomach during Spring, however, the US industrial outputs have still been 7.1 per cent lower than the pre-pandemic level registered during February this year.
Meanwhile, addressing to a waning fiscal stimulus from the US Government which in turn had weighed on US businesses, Oxford Economics wrote in a research note, “Industrial output came in well below expectations, one of the first real signs that the recovery is losing momentum under the weight of the ongoing health crisis and fading support from fiscal relief. ”