Production volumes expanded at the slowest rate for 14 months in August, while new business growth weakened from July’s four-month high. Consequently, purchasing activity rose at a softer pace while firms also registered slower increases in inventory levels.
Latest data signalled a further pick up in the rate of input price inflation at US goods producers. Moreover, average cost burdens rose at a solid pace that was the quickest recorded for four months. According to panellists, higher prices for raw materials such as metals, oil and electrical components had contributed to higher production costs. However, factory gate charges continued to rise at only a modest pace.