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Supply Strains Hold Back U.S. Growth

Supply Strains Hold Back U.S. Growth

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US manufacturing output fell 0.1% in June versus the +0.4% consensus, with the bulk of the weakness caused by a 6.6% plunge in auto sector output. It is important to remember that the weakness is a supply-side story and not demand-driven, given surging prices for both new and used vehicles in Tuesday’s CPI report.

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