On Tuesday, the US Federal Reserve said in a statement that US factory activities, accountable for roughly 11.3 per cent of entire US economy, had taken an unprecedented leapfrog last month that seemed to have bolted out of the blues, as a raft of automakers were believed to have cancelled out their annual retooling shutdowns, largely aimed at circumventing a global-scale semiconductor shortage.
In a statement issued earlier in the day, the US Central Bank said US manufacturing output had climbed by 1.4 per cent in July following a 0.3 per cent decline in June, insanely beating an analysts’ forecast of an increase of 0.6 per cent, as auto production had jumped as much as 11.2 per cent last month.
Nonetheless, latest upswing in US auto activities came against the backdrop of a dreary outlook in supply chains alongside a global-scale shortage of semiconductors that reportedly had spanned into smartphone industry after baffling US auto production.
Citing that the shortage had obligated a number of automakers to adjust their production schedule, the Fed said in a statement, “a number of vehicle manufacturers trimmed or canceled their typical July shutdowns, when they retool their plants”.
US manufacturing output soars in July
According to US Central Bank, excluding autos, factory activities rose by 0.7 per cent last month, while overall US manufacturing output hovered at 0.8 per cent higher than its pre-pandemic level, as strong domestic demands across the country kept supporting outlooks in both manufacturing and services sector following a robust reopening in second-quarter.
Nonetheless, despite the unexpected high-tide in factory activities, US motor vehicle production stood at 3.5 per cent below of what it had been at a latest peak on January 2021.