FILE PHOTO: Polaris ATV and snowmobile assembly line at their manufacturing and assembly plant in Roseau
Manufacturing output edged up 0.1% last month, the Federal Reserve said on Friday. Data for July was revised slightly lower to show production at factories rebounding 0.4% instead of 0.5% as previously reported. Economists polled by Reuters had forecast factory output gaining 0.1%.Motor vehicle and parts output decreased 5.0% last month after accelerating 5.
Manufacturing, which accounts for 11.1% of the economy, was already hobbled by slowing demand for goods because of higher interest rates. Since March 2022, the Federal Reserve has raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range. Excluding motor vehicles, factory output increased 0.6% last month after being unchanged in July. There were increases in the output of primary metals, machinery, aerospace and miscellaneous transportation equipment as well as furniture and related products. But production of wood products declined as did that of nonmetallic mineral products, fabricated metal products, and electrical equipment, appliances and components.