Industrial Production Rose 0.3% in September

Tuesday, 17 Oct, 2017

Manufacturing output grew 0.1% in September after slipping in the preceding two months.

Industrial production rose 0.3% in September after a 0.7% slump in August, according to the Federal Reserve. Still, the manufacturing of automobiles, home electronics and appliances advanced in a potentially positive sign for consumer spending.

Industrial production data for August had been heavily impacted by the hurricanes which temporarily shut down oil, gas and chemical plants along the U.S. Gulf Coast.

"Overall, with global trade and economic growth booming and the dollar still down substantially from its peak early this year, the outlook for USA manufacturing looks bright", Ashworth said. Production slipped 0.7% that month instead of the first estimate of 0.9%.

Output at USA factories rose 0.1% in September and mining output increased 0.4%.

For the third quarter as a whole, industrial production fell 1.5% at an annual rate; excluding the effects of the hurricanes, the index would have risen at least 1/2%. Before the storms, the manufacturing sector had been helped by a stronger global economy leading to greater demand for USA -made goods. All other mining sectors posted losses.

Utilities rebounded 1.5% in September, following a 4.9% decline in August. The same report includes a category for business investment that increased in both August and July. At 104.6% of its 2012 average, total industrial production in September was 1.6% above its year-earlier level. The trade association's index reached 60.8, the best performance since May 2004.