US industrial production misses forecasts in September
Industrial production in the US rose as expected last month but amid downwards revisions to readings for previous months, especially in manufacturing.
Total output edged higher by 0.1% on the month in September, according to the Federal Reserve, as expected by economists and was ahead by 1.6% on the year-ago level.
Production of consumer goods and business equipment both bounced back afetr falling in August, rising by 0.5% and 0.8% on the month, respectively.
To take note of, gains in the latter followed four consecutive monthly drops.
By major industry groups, factory output rose by 0.1% against August, alongside a 0.4% increase in Mining and a 1.5% advance in Utilities output.
To take note of, within manufacturing, production of durable goods jumped by 1.0% on the month, offsetting a 0.9% decline in that of non-durable goods, with weakness especially prominent in chemicals, according to the Fed.
In any case, at 76.0% the rate of use of total capacity utilisation was two tenths of a percentage point softer than economists had anticipated with a downwards revision to factory output in July the main culprit.
Reacting to the data, Ian Shepherdson, chief economist at Pantheon Macroeconomics said: "[Factory] output fell at a 2.2% annualized rate in Q3, depressed by automakers' attempts to reduce inventory, as well as the storms. With auto sales rocketing last month as people sought to replace hurricane-wrecked vehicles, we expect a clear rebound in Q4 production.
"In short, we see nothing wrong with the industrial sector that won't be fixed by time, as the hurricanes' effects fade."