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Economic news
17.10.2024

U.S. industrial production drops marginally more than predicted in September

The data published by the Federal Reserve on Thursday revealed that the U.S. industrial production dropped by 0.3 per cent m-o-m in September, following a downwardly revised 0.3 per cent m-o-m increase m-o-m (from +0.8 per cent m-o-m) in August.

Economists had predicted industrial production would decrease by 0.2 per cent m-o-m in September.

According to the report, the September total industrial production was impacted by a strike at a major producer of civilian aircraft, which held down its growth by an estimated 0.3 per cent, and the effects of two hurricanes, which subtracted an estimated 0.3 per cent. As a result, manufacturing production fell by 0.4 per cent m-o-m last month, and mining output reduced by 0.6 per cent m-o-m. Meanwhile, the output of utilities gained 0.7 per cent m-o-m.

Capacity utilization for the industrial sector decreased by 0.3 percentage point m-o-m to 77.5 per cent in September from a downwardly revised 77.8 per cent (from 78.0 per cent) in August. That was 0.3 percentage point below economists’ forecast of 77.8 per cent and 2.2 percentage points below its long-run (1972-2023) average.

In y-o-y terms, the industrial output declined 0.6 per cent in September, following a downwardly revised 0.2 per cent slip (from 0.0 per cent) in the previous month. This represented the sharpest annual fall since April (-0.8 per cent).

For the third quarter as a whole, the U.S. total industrial production dropped by 0.6 per cent y-o-y.

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