Hurricane Ida accounted for nearly half of the total decline in industrial production.
US industrial output fell 1.3% in September, more than expected and the worst fall since February.
September’s figures are disappointing, “particularly in the manufacturing sector where it appears clear that supply chain issues continue to weigh on activity,” JPMorgan economist Daniel Silver said in a note to clients.
The Federal Reserve reported Monday that nearly half, or 0.6%, of the overall decline in industrial output was attributable to Hurricane Ida.
Buttigieg says supply chain crisis ‘will continue next year’
It was the worst performance since a 3.1% drop in February, when severe winter storms hit much of the country, disrupting a wide range of manufacturing activities from autos to chemical plants.
Industrial production includes manufacturing, utilities and mining. Manufacturing output fell 0.7%, the government said, with motor vehicles and parts dragged down by 7.2% as shortages in semiconductors continued to thwart the industry. Outside the auto industry, factory output declined 0.3%, the government said.
#EMPTYSHELVESJOE trends on Twitter as supply chain crisis puts holiday shopping in jeopardy
Utility production fell 3.6%, while mining output, which includes the extraction of crude, fell 2.3%.
The Fed also revised its August reading down from a 0.4% gain to a 0.1% decline.
Even with a higher-than-expected decline and a correction for the decline in August, overall industrial output grew at an annualized rate of 4.3% in the third quarter. This is the fifth consecutive quarter with a gain of 4% or more.
The ‘joke’ about the supply chain before Christmas
decrease in labor participation Currently affecting every industry as well, supply chain disruptions have left a shortage of products in stores across the country. Department of transportation Secretary Pete Buttigieg said the supply chain crisis would continue into the next year, affecting the holiday season.
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“Certainly the challenges we face this year will continue next year,” Buttigieg said Sunday on CNN’s “State of the Union.” “Look, what’s happening isn’t just the supply side, it’s the demand side. Demand is off the charts. Retail sales are through the roof. And if you think about those images of ships, for example So, waiting at anchor on the West Coast—every one of those ships is filled with record amounts of goods that Americans are buying because demand is rising because incomes are rising as the president pushed this economy out of the teeth of a terrible recession. successfully directed.