US Industrial Production Falls for 2nd Month

Industrial output in the United States shrank 0.2 percent in September from August of 2015, following a downwardly revised 0.1 percent fall in the previous period and in line with market expectations, dragged down by lower production of durable goods and cuts in extraction and drilling of oil.
Federal Reserve | Joana Taborda | 10/16/2015 2:26:24 PM
Manufacturing output decreased 0.1 percent in September, as the output of durable goods moved down 0.2 percent and the production of nondurable goods was unchanged. Among durable goods industries, drops of 1.0 percent or more were recorded by electrical equipment, appliances, and components; nonmetallic mineral products; wood products; and miscellaneous manufacturing. Among nondurable goods industries, none registered a large change in output. The output of other manufacturing (publishing and logging) fell 1.3 percent after having dropped a similar amount in August.

Mining output declined 2 percent due to sizable cuts in both the extraction of crude oil and the drilling of oil and gas wells. Mining output in September was 5.7 percent below its level of a year earlier.

In contrast, warmer-than-usual temperatures in September led to an increase in the output of utilities (1.3 percent). Strong demand for air conditioning boosted the output of electric utilities, but that gain was partially offset by a drop in the output of gas utilities due to weak demand for heating. 

Year-on-year, industrial production edged up 0.4 percent: manufacturing rose 1.4 percent, utilities went up 1 percent while mining shrank 5.7 percent.

Capacity utilization for the industrial sector fell 0.3 percentage point in September to 77.5 percent, a rate that is 2.6 percentage points below its long-run (1972–2014) average.

For the third quarter as a whole, total industrial production rose at an annual rate of 1.8 percent, and manufacturing output increased 2.5 percent. A strong gain for motor vehicles and parts contributed substantially to the quarterly increases. 

US Industrial Production Falls for 2nd Month