Shares of industrial and transportation companies experienced a decline as the latest economic data indicated that the Federal Reserve may keep interest rates high for a longer period to combat inflation.
U.S. Industrial Production Surpasses Expectations
According to the Federal Reserve, U.S. industrial production surged by 1% in July. This growth was primarily driven by increased utility use due to the hot summer weather and a rebound in auto production. The factory output increase exceeded expectations of a 0.5% gain, as reported in a survey conducted by The Wall Street Journal.
Unexpected Rise in Eurozone Industrial Output
Despite sluggish production in the largest economies within the eurozone, the region's industrial output experienced an unexpected increase in June. Eurostat, the European Union's statistics body, revealed that total production rose by 0.5% compared to the previous month. Economists polled by The Wall Street Journal had anticipated a monthly decline of 0.6%.
Rising Costs of Shipping Goods from Asia to U.S.
The cost of shipping goods from Asia to the United States has witnessed a significant upward trend. However, American importers seem to be bearing the brunt of these higher prices after observing freight rates plummet earlier this year from record highs. According to transportation data and procurement firm Xeneta, the average spot rate to ship a 40-foot container from China to the U.S. West Coast increased by 61% during the six weeks through August 15, reaching $2,075.
Boeing Appoints Alvin Liu to Oversee China Business
Amidst a turbulent period for relations between Beijing and Washington and a challenging business environment, Boeing has selected Alvin Liu, a Chinese-born former Ford executive, to lead its China business.
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