Semiconductor chip shortage This problem continues to plague the auto industry as the output of US factories declines for the third time in five months.
Because chip interruptions pose a challenge to automakers, manufacturing output fell by 0.1% this month. U.S. Federal Reserve Reported on Thursday.
June #Industrial production: Total +0.4%, manufacturing -0.1%, motor vehicles and parts -6.6%, Mfg. ex. motor vehicles and parts +0.4%, utilities +2.7%, mining +1.4%; #Capacity utilization 75.4% https://t.co/w77QEqvxqs #FedData
— Federal Reserve (@federalreserve) July 15, 2021
However, the gross industrial output value increased, and the utilities (2.7%) and mining industry (1.4%) increased. The Federal Reserve stated that industrial output increased by 9.8% over last year.
With rising temperatures and heat waves sweeping across most of the country, utility production has performed well, while oil and gas production has stimulated mining in the United States
The continuing chip shortage has Delay car production, Leading to shutdowns and layoffs of American automakers’ factories. The Federal Reserve stated that production of cars, trucks and auto parts fell by 6.6% in June.
The agency said that excluding automobiles, industrial production actually increased by 0.4% that month.
According to a survey Bloomberg, Economists have called for factory output to increase by 0.3% in June and industrial production to increase by 0.6%.
Photo: Rick Wilkin/Reuters
