August, typically a holiday month, has seen the first dip in US manufacturing output over the last seven months, also because of auto plants idled. Still, the outlook for the full-scale economy remains positive for 2014.
Production forecasts remain upbeat as the overall economy continues to improve, auto sales remain at a high pace for the year and as September is seen as a very good month for factory manufacturing.
“The weakness in factory output in August is likely to be transitory,” comments Millan Mulraine, deputy chief economist at TD Securities in New York.
Weighed down by motoring production, overall plant output across the US slumped 0.4%, according to the US Federal Reserve. The drop follows a small increase in July, when auto production also climbed significantly. Typically, August remains a month when US automakers idle the production of their factories to allow for new model year cars to be introduced on the lines.
Output from car factories in August went down 7.6% after jumping 9.3% in July, and the outlook for the motoring production is also positive, with US auto sales at a 8-1/2 year high. Ford was among the notable automakers idling production in August, as it prepares its Flat Rock assembly facility for the revolutionary production of the aluminum intensive 2015 Ford F-150 pickup truck.