US industrial production weighed down by lower auto output in August

Industrial output in the US undershot economists' forecasts in August, as manufacturing production fell short and that from utilities surprised to the downside.

According the Department of Commerce, in seasonally adjusted terms, total industrial output rose at a month-on-month clip of 0.4% month (consensus: 1.0%).

Factory production meanwhile was 1.0% stronger versus July, when it increased by 3.9%, but the consensus had been for a rise of 2.4%.

Factory output was still 6.7% below its February levels, having fallen by 20.3% between February and April.

In August, the main drag in durables production came from auto production, with a slump in that sub-sector more than offsetting strength in the remainder.

Output in Mining fell 2.5% as the price of crude oil declined and that of utilities surprised with a 0.4% drop, instead of remaining flat as expected.

Commerce attributed the decline in Mining to storm-induced reductions in oil and gas extraction.

In comparison to the year earlier level, total industrial production was down by 7.7%.

Industrial capacity use increased from 71.1% to 71.4%, missing forecasts for a reading of 71.7%.