Falling motor vehicle output drags on US industrial production in September
Industrial production in the States shrank a tad more than expected last month on the back of weakness in factory sector activity and mining.
According to the Department of Commerce, total output dropped at a 0.4% month-on-month pace (consensus: -0.1%), although upwards revisions to readings for the prior month acted as an offset.
By market groups, production of business equipment was especially weak, dropping by 0.5% on the month following a fall of 0.5% in July and a rise of 1.1% in August.
Output of consumer goods and non-industrial supplies meanwhile both declined by 0.2% versus the previous month while that of materials declined by 0.5%.
Commerce attributed the bulk of the weakness to falling levels of motor vehicle production, alongside a bigger than 1.0% drop in industrial and other equipment, but said that increases of 1.0% or greater were seen in the production of consumer energy products, information processing equipment, and by defense and space equipment.
By major industry groups, manufacturing output dropped by 0.5% versus August and in mining by -1.3%, while that of utilities increased by 1.4%.
The rate of total capacity utilisation fell by 0.4 percentage points to 77.5%, putting it 2.3% below its long-run average (1972–2018).
Versus a year ago, total industrial production was 0.1% lower.