U.S. Manufacturing Output Makes a Comeback in August 2024

After quite a difficult July, U.S. manufacturing saw a nice increase in August 2024, particularly in motor vehicle production. 

Although it’s not totally out of the woods, and performance is uneven across the sectors, the latest data shows promising signs of recovery in the industry.

Motor Vehicle Production

A major factor in the recent boost was a surge in motor vehicle and parts production, which jumped almost 10% after an 8.9% decline in July. 

This rebound amped up overall durable manufacturing, with gains in primary metals, electrical equipment, and aerospace manufacturing.

Mining and Utilities Output 

Partly due to early shutdowns in the petrochemical sector ahead of Hurricane Beryl, mining production also made a little comeback in August, rising 0.8% after a drop in July.

Utilities production, on the other hand, remained flat after a substantial 3% drop in July. Not all sectors saw improvements, however. 

Nondurable Manufacturing

Miscellaneous durable goods fell by 0.9%, as well as nondurable manufacturing (like paper, chemicals, and petroleum) also slipped down 0.2%.

Sectors like printing and petroleum products saw declines, though chemicals and paper production managed modest increases.

Capacity Utilization

Capacity utilization (this measures how fully (or not) factories are using their resources) rose slightly to 78% in August—a small but positive sign after it dipped in July. Having said that, it does still fall below the long-term average. 

Although they haven’t fully reached pre-pandemic levels, the manufacturing sector’s operating rate increased to 77.2%, suggesting that they might finally be starting to recover.

Image Credit: Shutterstock/Leigh Prather