FILE PHOTO: A Toyota car dealership is seen in Annapolis, Maryland on May 27, 2021. (Photo by JIM WATSON / AFP)
Washington, United States — US industrial production surged in August as motor vehicle manufacturing bounced back after plummeting in July, the Federal Reserve said Tuesday, shortly before kicking off a two-day meeting on interest rates.
Total industrial output exceeded expectations to rise by 0.8 percent last month from a revised 0.9 decline in July, the US central bank said in a statement, pinning much of the rise on “a recovery in the index of motor vehicles and parts.”
Article continues after this advertisementThe index “jumped nearly 10 percent in August after dropping roughly 9 percent in July,” it added. The July data was affected by the larger-than-expected impact of Hurricane Beryl.
FEATURED STORIES BUSINESS National ID gives more Filipinos ‘face value BUSINESS BIZ BUZZ: Unwinding Gogoro … quietly BUSINESS Polvoron maker seeks P500 million capital for expansionREAD: US industrial production came in hot in May
The sharp monthly rise in industrial production in August was well above market expectations of a 0.1 percent rise, according to Briefing.com.
Article continues after this advertisementThe news is likely to soothe concerns about the sector, shortly before the Fed kicks off its two-day interest rate meeting later Tuesday which is widely expected to end with a rate cut.
Article continues after this advertisementAnalysts and traders are split about how sharply the US central bank will cut rates, with opinion divided about whether it will announce a more conventional quarter percentage-point cut on Wednesday, or move ahead with a more aggressive half point reduction.
Article continues after this advertisementThe manufacturing index rose 0.9 percent last month due largely to the rebound in motor vehicles, the Fed said.
Excluding the volatile motor vehicles and parts sector, the industrial production index rose by 0.3 percent last month, it noted.
Article continues after this advertisement“The index for mining climbed 0.8 percent, while the index for utilities was flat,” it added.
“The significant beat to consensus for both total production and manufacturing output was essentially matched by big downward revisions to earlier months,” Pantheon Macroeconomics senior US economist Oliver Allen wrote in a note to clients.
Subscribe to our daily newsletter
This leaves “the level of industrial and manufacturing activity roughly as expectedsabong online betting,” he added.
READ NEXT The first MMDA satellite office is now open at Robinsons Galleria Supercars line up at Cambodia’s Angkor Wat temples EDITORS' PICK Heart Evangelista: Woman to woman, I never had a problem with Pia Wurtzbach Manila Water Foundation and partners underscore benefits of handwashing DILG identifies 38 hotspots ahead of 2025 polls LIVE UPDATES: Tropical Storm Kristine Marcos smiled, walked away when asked about VP Duterte’s accusation Marcos: PCG 'never alone' in mission to protect PH MOST READ SC issues TRO vs Comelec resolution on dismissed public officials Tropical Storm Kristine slightly intensifies; Signal No. 2 in 5 areas LIVE UPDATES: Tropical Storm Kristine Espenido retracts drug-related allegations vs De Lima View comments