(Dec 3): US industrial production barely rose in September, restrained by flat factory output that is consistent with sluggish manufacturing.
The 0.1% increase in production at factories, mines and utilities followed a downwardly revised 0.3% decline the previous month, according to the Federal Reserve. The report, issued on Wednesday, was delayed for well over a month because of the federal government shutdown.
Manufacturing has been struggling amid uncertainty about President Donald Trump’s trade policy, which has restrained some capital investments and hiring as well as increased the cost of inputs. The Institute for Supply Management’s manufacturing index has contracted for nine straight months.
The sector also posted job losses in recent months, with employment down 54,000 this year through September.
Supply-chain disruptions among vehicle producers beginning in mid-September also likely weighed on manufacturing output and headline industrial production that month, Bloomberg Economics said in a note before the report.
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The report showed auto and parts production fell 2.2%, while output of wood products declined 3.5% against a backdrop of sluggish housing demand. By market group, output of consumer goods dropped for a second month. Business equipment production rebounded in a broad advance.
Capacity utilisation at factories, a measure of potential output being used, eased to 75.5%. The overall industrial utilisation rate held steady.
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