U.S. manufacturing output rose by 0.6 percent in August compared to the previous month, when it was marked a 0.1 percent drop. Analysts anticipated only a 0.2 percent growth. Manufacturing reading showed a 0.5 percent increase, recovering its July drop. Factory output rose by 0.2 percent at monthly rate over the past 4 months after having diminished by 0.5 percent per month for January-April period. The indexes for utilities and mining sectors grew by 0.6 percent and 1.4 percent, respectively in August.
The industrial production on annual basis still weak, as it was registered a 0.4 percent growth, though last year figure was of a 0.5 percent increase.
So, the U.S. industrial output showed a better-than-expected reading in August, boosted by a growth in machinery and primary metals production, but the perspectives for factories remain weak owing to the backdrop of trade tensions and global economies slowdown.
The investors await the Fed’s meeting, scheduled for Wednesday, anticipating the next rate cut this year, as the protracted Sino-U.S.trade war could stop the longest economic expansion in history.
Recall, the U.S. economy is in its 11th year of expansion. The Fed diminished borrowing costs in July for the first time in a decade.
The Atlanta Fed is anticipating a 1.8 percent GDP jump on year-on-year basis in Q3.
The capacity utilization increased from 77.5 percent in July, to 77.9 in August, though analysts were expected 77.6 percent rise.
U.S. markets softly reacted on economic statistics, released on Tuesday, as the investor’s focus was the next day Fed’s rate decision.