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Writer's pictureAIM Team

Industrial production up in August

IndustryWeek (9/16, Minter) reported the increase in manufacturing production last month “was ‘welcome news,’” said Chad Moutray, Chief Economist for the National Association of Manufacturers, wrote in NAM’s Shopfloor (9/17) blog. Moutray “noted that gains were ‘fairly broad-based’ and the pace of output ‘appears to be picking up, with year-over-year growth for manufacturers of 2.6%. Overall, manufacturers are seeing a modest acceleration in activity lately, rebounding from slowness in the spring and summer months.’”

Reuters (9/16) reports that the Federal Reserve said on Monday that industrial output rose 0.4 percent in August, boosted by a 0.7 percent increase in factory output. Reuters reports that the strong showing is likely to encourage the Fed to ease off of its stimulus policies.

The Wall Street Journal (9/16, Sparshott, Subscription Publication) credits the rise in industrial output to an increase in auto and other manufacturing production. Outside of factory production, the other components were mixed – utility output fell 1.5%, while mining rose 0.3%.

Bloomberg News (9/17, Jamrisko) reports the rise in industrial production was the largest in six months and indicates that manufacturing “will contribute more to the expansion.” The numbers “showed strength in housing and autos is rippling through the economy, with a measure of appliance and furniture output climbing to the highest since 2009 and vehicle assemblies growing at the fastest pace in six years.”

The AP (9/17), Reuters (9/17) and other media sources also cover the story.

New York Fed Manufacturing Index Slows In September. The Wall Street Journal (9/16, Madigan, Subscription Publication) reports the Federal Reserve Bank of New York’s general economic index eased to 6.3 in September from 8.2 last month.

Bloomberg News (9/17, Stilwell) reports factories in the region are seeing sustained “consumer demand and business investment as the economy shakes off the effects of fiscal drag and overseas markets improve.” The article also notes that further “gains in housing and auto industries are also bolstering growth in manufacturing, which accounts for about 12 percent of the economy.”

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