U.S. Industrial Production Unexpectedly Drops 0.6% In September
October 16 2020 - 5:53AM
RTTF2
Industrial production in the U.S. unexpectedly decreased in the
month of September, according to a report released by the Federal
Reserve on Friday.
The Fed said industrial production fell by 0.6 percent in
September after rising by 0.4 percent in August. The drop surprised
economists, who had expected production to increase by 0.5
percent.
Production declined for the first time in five months but has
still recovered more than half of its February to April decline,
although it remains 7.1 percent below its pre-pandemic February
level.
The unexpected decrease in production in September was partly
due to a 5.6 percent nosedive in utilities output, which came as
demand for air conditioning fell by more than usual.
The report also showed manufacturing output dipped by 0.3
percent in September after jumping by 1.2 percent in August.
On the other hand, the Fed said mining output surged up by 1.7
percent in September after tumbling by 2.4 percent in the previous
month.
"Goods-producing industries have recovered faster than services,
but activity won't be immune from softening as the broad economic
recovery loses steam," said Oren Klachkin, Lead U.S. Economist at
Oxford Economics.
He added, "With lawmakers unlikely to deliver significant fiscal
stimulus and the Covid-19 crisis far from resolved both
domestically and abroad, we believe industrial activity will face
stiffer headwinds in the months ahead."
Capacity utilization for the industrial sector decreased to 71.5
percent in September after rising to 72.0 percent in August.
The pullback came as capacity utilization in the utilities
sector plunged to 70.4 percent in September from 74.7 in
August.
Capacity utilization in the manufacturing sector edged down to
70.5 percent from 70.7 percent, while capacity utilization in the
mining sector rose to 77.6 percent from 76.1 percent.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Apr 2023 to Apr 2024