Mubasher: American factory production increased last month for the first time since June, as reported by Bloomberg on Tuesday.
This comes as a sign the industry is moving past the negative impacts caused by hurricanes Harvey and Irma, as shown by the data of the US Federal Reserve.
Data showed that factory output increased by 0.1% after falling 0.2%, while total industrial production, which also includes mines and utilities, rose 0.3%, after a revised 0.7% decline.
The Federal Reserve said that Harvey, Irma combined effect trimmed industrial production growth by 0.2%.
For the third quarter, industrial production fell 1.5% at year-on-year, however, without the impact of the hurricanes, the index would have climbed at least 0.5%.
As volatility from the hurricanes dissipates, economists expect manufacturing will keep humming along as household demand, business investment and improving overseas markets help to lift production. History shows economic activity that’s initially subdued due to major storms tends to get a boost amid rebuilding in later months.
Bloomberg also noted that recent data have indicated manufacturing is expanding steadily, as the Institute for Supply Management’s recent manufacturing index showed yhat factories expanded in September at the fastest pace in 13 years.
