Data released on Friday showed the first decline in manufacturing production since April. According to analysts at Wells Fargo, the manufacturing sector is another area of the economy losing momentum recently, with production down 0.3% in September. They point out that areas that have driven the factory sector’s recovery gave back ground last month.
“Industrial production unexpectedly fell in September, contracting 0.6%. Utilities were a major drag (-5.6%) after a particularly hot August, while mining output (up 1.7%) only partially reversed last month’s storm-related drop.”
“A number of areas that have been key to the manufacturing sector’s rebound thus far saw output decline in September. This suggests that pent-up demand from spring shutdowns or the initial surge in interest for goods to spruce up or work from home is fading.”
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