WASHINGTON: U.S. manufacturing output increased more than expected in August, boosted by a surge in machinery and primary metals production, but the outlook for factories remains weak against the backdrop of trade tensions and slowing global economies.
Production at factories fell 0.4per cent in August on a year-on-year basis. Manufacturing, which accounts for about 11per cent of the U.S. economy, is being hobbled by the U.S.-China trade dispute. The trade war has eroded business confidence, leading to a slump in the sector, which ironically the Trump administration has sought to protect against what it has called unfair foreign competition.
The weakness in manufacturing mirrors a slowing domestic economy. The Atlanta Fed is forecasting gross domestic product rising at a 1.8per cent annualized rate in the third quarter. The economy grew at a 2.0per cent pace in the April-June quarter, stepping down from the first quarter's 3.1per cent rate.Channel NewsAsia - Sentifi topic widgetManufacturing has also been hurt by an inventory overhang, especially in the automotive industry. Motor vehicles and parts production fell 1.
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