ZCZC
BCN-11
US-ECONOMY-MANUFACTURING-INDICATOR
US manufacturing emerges from recession in Q3: Fed
WASHINGTON, Oct 18, 2019 (BSS/AFP) – US manufacturing recovered in the
third quarter after a bruising start to the year in which President Donald
Trump’s trade wars put a major dent in factory output, the Federal Reserve
reported Thursday.
But in the month of September alone, overall American industrial
production pulled back as the nationwide strike at General Motors assembly
plants and cutbacks in crude oil production weighed on output.
The third-quarter manufacturing rebound undid only some of the recent
damage, however, with output still nearly one percent below September of last
year.
The Fed’s industrial production index — which measures energy generation,
mining and oil production as well as manufacturing — fell 0.4 percent in
September, a worse result than economists expected.
The decline appeared larger after an upward revision to August, which
posted the largest increase in a year.
Even without the month-long GM strike, in which nearly 50,000 workers
walked off the job across the United States, output still would have declined
0.2 percent, according to the Fed.
GM and the United Auto Workers this week announced a tentative deal which
could put an end to the work stoppage in coming days.
For the latest quarter, US manufacturing rose 1.1 percent, led higher by
computers and electronics, autos and appliances, suggesting that the strike
had halted healthy momentum in American auto production.
US manufacturing in September outside the auto and auto parts sectors also
declined 0.2 percent compared to August, with weakness apparent in production
of metals, machinery and electrical appliances as well.
BSS/AFP/HR/0955