Industrial production in the United States has returned to pre-pandemic levels, according to the Federal Reserve.
According to Federal Reserve figures released Wednesday, production by US manufacturers, mines, and utilities in August topped the level seen before the epidemic triggered an unparalleled decline.
In August, industrial production grew 0.4 percent, although it could have increased by 0.3 percentage points if Hurricane Ida had not caused floods and destruction in sections of Louisiana and the northeastern United States.
The rise was in line with analysts’ predictions, putting it 0.3 percent higher than it was in February 2020, the last month of normalcy before the Covid-19 pandemic triggered a significant drop in industrial output.
While the rebound constituted a “milestone,” Oxford Economics’ Oren Klachkin warned that the sector was still dealing with supply chain challenges, as evidenced by a roughly flat growth in motor vehicle manufacturing as the industry grapples with critical semiconductor shortages.
“Our base hypothesis is that rising domestic and overseas demand will maintain the industrial sector on a healthy growth path, but gains will be limited by lingering supply chain and hiring constraints,” Klachkin stated.
According to the Fed study, manufacturing grew 0.2 percent last month despite hurricane-related plant closures, while mining decreased 0.6 percent owing to storm-related oil and gas production interruptions.
According to the report, utilities increased by 3.3 percent due to increased demand for air conditioning as the weather remained warm.