Manufacturing Slips 0.1% in August

Manufacturing production fell 0.1% in August but the Federal Reserve Board revised its July estimate from no change to a 0.3% increase.

Durable goods production was unchanged. Declines in motor vehicle and furniture offset increases in electronics, construction supplies, machinery and metals.
Non-durable goods output fell 0.2% after rising strongly for there months. Paper, apparel and textiles had the largest declines but each had increased substantially in July.
The decline was expected after a loss of 68,000 manufacturing jobs that was reported last week said Jim Haughey, Newport Communications' senior economist.
"The August fall in manufacturing is the result of an early summer pause in consumer spending growth when the income tax cuts had been spent and subsidized auto loan rates were temporarily withdrawn. Consumer spending and manufacturing orders have both rebounded so we should expect rising manufacturing output in the next few months," Haughey said.
The most economically sensitive industries -- cars, machinery, housing and electronics -- continue to expand rapidly, said Haughey. "We can expect consumer packaged goods to catch up. The housing and auto sales booms have temporarily diverted some consumer time and money from retail stores."