Industrial production rose 0.7% in September, with utility output up 3.5%
Manufacturing rose 0.3%, vehicle and parts output fell 3%, and capacity utilization stayed 2.5 percentage points below its long-term average.
Key takeaways
U.S. industrial production rose 0.7% in September, but the largest increase was in utilities, not factories, the U.S. Federal Reserve said Friday. The gain was above the 0.4% consensus from Econoday, a service that surveys forecasters on economic data, and above a forecast range of 0.1% to 0.6%. The report was released at 9:15 a.m. Eastern time.
Utility output rose 3.5%, with gains in both electric and natural gas utilities. Manufacturing rose 0.3%, matching that survey's forecast, and mining rose 0.2%.
Durable goods output rose 0.1%. Gains of 1% or more in primary metals, machinery and electrical equipment, appliances and components were offset by a 3% drop in motor vehicles and parts.
In the third quarter, industrial production rose at an annual rate of 2.8% while utilities climbed 14.8% and manufacturing 0.7% over the same period.
Capacity utilization rose to 76.9% from a revised 76.4% in August, above the 76.5% the survey expected. The rate is still 2.5 percentage points below its long-run average of 79.4% between 1972 and 2025.
August industrial production, reported as unchanged on September 18, was revised to a 0.1% increase.
September production was 2.2% above its year-earlier level.
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Frequently asked questions
What drove the September increase in industrial production?
Utility output rose 3.5%, while manufacturing rose 0.3% and mining rose 0.2%.
Did the gain beat forecasts?
The 0.7% increase was above the 0.4% Econoday consensus and a forecast range of 0.1% to 0.6%.
What happened to vehicle production?
Motor vehicles and parts output fell 3%, offsetting gains of 1% or more in primary metals, machinery and electrical equipment.
How does capacity utilization compare with its long-run average?
It rose to 76.9% but remained 2.5 percentage points below its long-run average of 79.4%.
