US factory production rose at healthy pace in August
US factory output increased in August at a solid clip, reversing a sharp drop in July, as production of metals, machinery and chemicals all rose.
The Federal Reserve said Tuesday that manufacturing production climbed 0.5 per cent last month, after a 0.4 per cent drop in July.
Despite the improvement, manufacturers will likely continue to struggle. Factories have been hit by the US-China trade war, which has raised their costs and curtailed their exports. Manufacturing output fell in the first two quarters of this year, the first time that’s happened since 2016. In the past 12 months, factory output has dropped 0.4 per cent.