Hurricane Ida Drags Industrial Production Growth to Four-Month Low in August

Source: Federal Reserve

Industrial production growth slowed to a four-month low in August, dragged by the late-month shutdowns brought about by Hurricane Ida. VIS is up 0.48%

• Production grew 0.4% in August, slower than the 0.8% climb in August. This is the slowest in four months since April’s 0.1% growth.
• Ida-related shutdowns dragged the growth by an estimated 0.2%, with plants for petrochemicals, plastic resins, and petroleum refining closed.
• Total industrial production stood at 101.6% of its 2017 average, up 5.9% year-on-year and 0.3% higher than the pre-pandemic levels.
• Manufacturing inched up 0.2%, with durable goods posting growth for the month. 
• The Biggest gains were in furniture and related products, and the biggest loss was in electrical equipment, appliances, and components.
• Non-durable goods also increased, with gains seen in food, beverage, and tobacco products for paper and for petroleum and coal offsetting losses in chemicals.