(Fed) US industrial production plunged by 1.3% in September, after another decline of 0.1% in August. Manufacturing output was down 0.7%.
About 0.6% of the fall in industrial production was connected to the impacts of Hurricane Ida, which also resulted in a 0.3% drop in manufacturing.
The industrial sector’s capacity utilization dropped by 1.0% to 75.2% in September from the prior year to remain 4.4% below its long-run average.
Motor vehicles and parts dropped by 7.2%, with the global shortage of semiconductors hampering operations. Factory output was down by 0.3%.
Utilities shed 3.6% as warmer-than-usual August led to a fall in demand for cooling. Mining production saw a 2.3% drop on lingering impacts of Hurricane Ida.
Total industrial production was still up 4.3% in the third quarter from the prior year, the fifth straight quarter with an increase above 4%. The production level in September is now 4.6% above the prior year.
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