Industrial production rebounded strongly with the easing of COVID-19 restrictions. While industrial production advanced at an annual rate of 6.1% during the second quarter, it fell 0.2% in June due to labor shortages, supply chain disruptions, and rising costs.
The July Manufacturing PMI declined 0.2 percentage points from the June reading to 52.8%. But this reading marked the 26th consecutive month of growth. Strong demand for industrial goods and favorable government policies to support domestic production should drive the performance of industrial goods manufacturers.
