US factory output up 0.5% in July, but lower than a year ago | Ocean cargo spot rates reverse upwards | Import prices increase 0.4% in July, most in a year
US factory production rebounded in July, growing by 0.5% from the previous month, though it remains 0.7% below production levels from a year ago, according to Federal Reserve data. A 5.2% jump in motor-vehicle output fueled the July increase, as the annual car assemblies rate was the highest since late 2018 at 11.87 million. Data showed manufacturing output excluding motor vehicles rose 0.1% after declining the previous two months.
Decreasing spot rates for ship cargo during the first half of the year are on an upward trajectory, such as the 61% increase in fees during the past six weeks for 40-foot containers from China to the US West Coast, per Xeneta. Shippers have contended with roller coaster rates, including rises during the pandemic and decreases amid retailer overstocks, and experts predict the recent increases will be short-lived as import volumes remain lower than in 2022 and new containerships are launched.
US import prices increased more than anticipated in July, partly due to higher petroleum products and food costs. Import prices are down 4.4% from a year ago but increased by 0.4% in July, while core import prices, which exclude fuel and food, decreased by 0.2% in July. Export prices are down 7.9% from a year earlier and increased 0.7% in July, bouncing back from a 0.7% decline in the prior month.
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