US Industrial Production Rebounds in September

US industrial production increased by 0.3 percent month-over-month in September 2017, as widely expected, following a downwardly revised 0.7 percent drop in August. Output rebounded for manufacturing, utilities and mining, as the effects of Hurricanes Harvey and Irma began to fade.

Manufacturing production rose 0.1 percent, recovering from a 0.2 percent drop in August. Durable manufacturing went up 1 percent after gaining 0.2 percent in the previous month, boosted by machinery (3 percent from -2.2 percent in August), fabricated metal products (0.7 percent from 0.4 percent), and computer and electronic products (0.9 percent from 0.3 percent). Nondurable manufacturing slumped 0.9 percent, following a decline of 0.6 percent in August, as output fell for chemicals (-2.6 percent from -2.3 percent in August), and petroleum and coal products (-1.7 percent from -0.1 percent). By contrast, output rose for both food, beverage, and tobacco products (0.6 percent from 0.3 percent in August) and plastics and rubber products (1.1 percent from -0.8 percent).

Also, mining output advanced 0.4 percent after contracting by 0.2 percent in the previous month; and utilities output grew 1.5 percent, recovering from a 4.9 percent fall in August. Within utilities, electric production rose 1.5 percent (-5 percent in August) and natural gas output increased 1.4 percent (-3.8 percent in August).

Compared to the same month of 2016, industrial production rose 1.6 percent, as output rose for manufacturing (1 percent) and mining (9.8 percent), but fell for utilities (-4.1 percent).

For the third quarter as a whole, industrial production fell 1.5 percent at an annual rate, with manufacturing shrinking by 2.2 percent.

Capacity utilization for the industrial sector increased 0.2 percentage point in September to 76.0 percent, a rate that is 3.9 percentage points below its long-run (1972–2016) average.

US Industrial Production Rebounds in September

Federal Reserve | Joana Ferreira |
10/17/2017 1:31:30 PM