US industrial production rises 0.7 per cent as utilities output jumps
US industrial production increased 0.7 per cent in September, after a smaller rise in August. Utilities expanded faster than manufacturing and mining, while motor vehicle and parts output fell. The Federal Reserve’s figures put overall capacity utilisation at 76.9 per cent, below its long-run average, with an annual revision scheduled for November.
Economics & Markets··Night
September output rises after a modest August
US industrial production increased 0.7 per cent in September. The Federal Reserve, the US central bank, released the monthly figures, and professional services firm KPMG’s own analysis reports the same increase. The measure covers physical output in manufacturing, mining and utilities, with the detailed figures separating their different monthly performances.[1], [2]
The Fed puts August’s increase at 0.1 per cent. September’s total index stood at 104 per cent of its 2017 average and was 2.2 per cent above its year-earlier level. Across the third quarter, industrial output expanded at an annualised rate of 2.8 per cent. Utilities rose 3.5 per cent during September, while mining increased 0.2 per cent.[1]
Manufacturing grows while vehicle output falls
Manufacturing output rose 0.3 per cent in September. Durable manufacturing increased 0.1 per cent, with primary metals, machinery and electrical equipment each recording gains of at least 1 per cent. Motor vehicles and parts fell 3 per cent. Nondurable manufacturing rose 0.4 per cent, led by printing and support activities and chemicals.[1]
In the third quarter, durable manufacturing grew at an annualised 3.8 per cent rate, supported in part by a 28.4 per cent annualised rise in semiconductors and related electronic components. Nondurable manufacturing contracted at a 1.6 per cent annualised rate. For the manufacturing sector as a whole, the quarterly annualised increase was 0.7 per cent.[1]
Capacity use remains below its long-run average
Total capacity utilisation reached 76.9 per cent, 2.5 percentage points below its 1972–2025 average. Manufacturing utilisation was 75.9 per cent, mining 87.5 per cent and utilities 73.8 per cent. The Fed plans an annual revision on November 24, incorporating new benchmark information and moving the index base year to 2022.[1]
Manufacturing capacity utilisation was 2.3 percentage points below its long-run average, while mining was 2.3 percentage points above its own average.[1]
