US Industrial production has dropped sharply as carmakers continue to struggle from global chip shortages and factories still struggling to recover from hurricane disruption.
Source: Federal Reserve
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Industrial production dropped 1.3% in September as the narrower manufacturing output dropped 0.7%.
The decline was the sixth consecutive month of a flatline US manufacturing production. August’s industrial output was revised downwards to a 0.1% drop, not a 0.4% rise.
The data from the Federal Reserve indicated that production of motor vehicles and parts plunged 7.2% as “shortages of semiconductors continued to slow down operations’, while factory output dropped 0.3%
The output of utilities declined 3.6% as demand slowed down after a warmer-than-expected August.
Mining production declined 2.3% due to the “lingering effects of Hurricane Ida” that had forced oil rigs to close in the Gulf of Mexico to suspend operations.