US industry gains on surge in manufacturing, mining

US industry posted its biggest output gain in a year in August, pushed by big rebounds in manufacturing and mining, the Federal Reserve reported Tuesday.

Manufacturing was a major driver of the recovery, with solid gains across many sectors -- with the notable exception of autos -- but output is still down compared to the same period of last year, according to the data.

American industry has been hurt by the trade war with China, which has created uncertainty that has put the brakes on business investment. Key private manufacturing surveys have reflected the slowdown.

However, analysts cautioned that the upbeat figures -- which come as the Fed’s policy board is meeting to decide whether to cut lending rates again to boost the economy -- are inflated and will not last long.

The Fed’s industrial production index jumped 0.6 percent compared to July, the largest increase since August 2018, the report said. That far exceeded the consensus forecast among economists.

“Factory output has increased 0.2 percent per month over the past four months after having decreased 0.5 percent during the first four months of the year,” the Fed said.

Mining, including oil production surged 1.4 percent, erasing the decline in July when oil extraction in the Gulf of Mexico was hit by Hurricane Barry.

Manufacturing jumped 0.5 percent, after declining nearly the same amount in July, but is still 0.4 percent below production in the first eight months of 2018.