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Factory production rose at healthy pace in August in U.S.

WASHINGTON — U.S. factory output increased in August at a solid clip, reversing a sharp drop in July, as production of metals, machinery and chemicals all rose. The Federal Reserve said Tuesday that manufacturing production climbed 0.5 percent last month, after a 0.4 percent drop in July.

Factories have been hit by the U.S.-China trade war, which has raised their costs and curtailed their exports. Manufacturing output fell in the first two quarters of this year, the first time that’s happened since 2016. In the past 12 months, factory output has dropped 0.4 percent.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the improvement last month was mostly a blip and the trade war will continue to drag down U.S. factories. “Manufacturing is in recession, with no relief in sight,” he said in a note to clients.

Industrial production, which includes manufacturing, mining and utilities, rose 0.6 percent in August. Mining output jumped 1.4 percent, partly because oil and gas drilling rebounded after Hurricane Barry shut down production in July. Utility output rose 0.6 percent.

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