September 21st, 2021

August industrial output slows to 0.4% gain after Ida strike

By Martin Crutsinger, The Associated Press on September 15, 2021.

In this March 24, 2021 photo, a sign stands near an entrance to a General Motors assembly plant in Wentzville, Mo. U.S. factory production in July posted the strongest gain in 4 months, reflecting a surge in production at auto plants that are still confronting major supply chain problems. The Federal Reserve reported Tuesday, Aug. 17, that manufacturing output increased 1.4% in July following decline of 0.3% in July. (AP Photo/Jeff Roberson)

WASHINGTONIn (AP) – U.S. industrial production slowed to a 0.4% gain in August as the shutdowns caused by Hurricane Ida curbed manufacturing activity.

Closures of petrochemical plants and petroleum refining along the Gulf Coast shaved 0.3 percentage points from output, the Federal Reserve reported Wednesday, which was just half the 0.8% increase recorded in July.

Industrial production covers manufacturing, utilities and mining. For just manufacturing, factory output slowed to a 0.2% gain, reflecting the hurricane impact, following a much stronger 1.6% increase in July. The August increase was led by a big gain in furniture production.

Manufacturing has been hobbled in recent months by snarled supply chains particularly in such areas as production of computer chips for cars.

Output at the nation’s utilities rose 3.3% in August while output in mining was down 0.6%.

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