U.S. production activity jumped to the highest level in the past 13 years last month as supply chains were broken by two powerful hurricanes – Harvey and Irma, which lead to factories struggling to deliver their products and raw materials price growth.
A survey by the Institute for Supply Management yesterday showed the economy’s momentum, while factories demonstrated higher growth rates in September.
Figures on employment by manufacturing companies are at their peak since 2011. A great deal of the gain is likely to be the aftermath of the hurricanes, still production growth is robust, – RDQ Economics’ John Ryding says.
According to the Institute for Supply Management, figures of factory activity climbed to 60.8 in the previous month, up from 58.8 at the end of summer. Figures over 50 mean expansion of production, which is around 12% of the American economy.
The institute also pointed out that Harvey and Irma had created problems with supply chains and prices for the chemical sector, along with that the situation with food and tobacco industries had caused some worries.