In September, United States industrial production exhibited a 0.3% increase when compared to the previous month, following a period of stability in August (revised data). This information comes from the Federal Reserve, the central bank of North America.
In comparison to September 2022, the overall production saw a modest uptick of 0.1%. During September, the utilization of the industrial sector’s installed capacity rose to 79.7%, up from the revised rate of 79.5% recorded in August. When compared to September 2022, capacity utilization showed a notable increase of 1.5%.
August’s production data was revised downward significantly, indicating no change from the previous estimate, which had suggested a 0.4% gain.
Manufacturing experienced a 0.4% increase in September, while motor vehicle production saw a 0.3% rise, although it faced pressure due to an ongoing strike involving three automakers.
Capacity utilization climbed from 79.5% in August to 79.7% in September. This metric reflects the extent to which the nation’s factories, mines, and public services are operating at their capacity limits.
Economists had anticipated a utilization rate of 79.7%.
In contrast, public services production decreased by 0.3% in September.
Production in Minas Gerais, which includes oil and natural gas, recorded a 0.4% increase, marking the fourth consecutive monthly gain.
Furthermore, the defense goods index achieved its fifth consecutive monthly gain of at least 1%.
Looking at the broader perspective, Richard Moody, the chief economist at Regions Financial, pointed out that the UAW strike began in the middle of the month, with the initial wave of strikes being relatively modest. However, he cautioned that the impact of the strike could become more pronounced if it spreads and persists over time.