US factory output contracts in September on strike, hurricanes
Industrial output slipped more than anticipated last month by 0.3%, reversing a 0.3% rise in August
US INDUSTRIAL production fell in September, the Federal Reserve said on Thursday (Oct 17), with overall output bogged down by natural disasters and a month-long Boeing worker strike that effectively shuttered some aircraft assembly plants.
Industrial output slipped more than anticipated last month by 0.3 per cent, reversing a 0.3 per cent rise in August, according to Fed data.
“A strike at a major producer of civilian aircraft held down total (industrial production) growth by an estimated 0.3 per cent in September, and the effects of two hurricanes subtracted an estimated 0.3 per cent,” said the Fed in a report.
Among major industry groups, manufacturing slid 0.4 per cent and mining was down 0.6 per cent.
In particular, the mining output fall came as “effects of two hurricanes on oil and gas extraction more than offset gains elsewhere.”
This week, aviation giant Boeing announced plans to raise up to US$25 billion as it sought to replenish cash flow while grappling with production issues and a major strike in the Seattle region.
About 33,000 Boeing workers in the Pacific Northwest have been on strike for over a month as they seek higher wages and better retirement benefits.
The labour action effectively shut down assembly plants for the 737 MAX and 777. AFP
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