Fed: Industrial production dropped 1.3% in September

Despite the drop, total industrial production rose 4.3% at an annual rate for 3Q, the 5th consecutive quarter with a gain of at least 4%.
Industrial Production Rises October 2021

Industrial production dropped 1.3% in September after moving down 0.1% the month before, according to the U.S. Federal Reserve.

Output was previously reported to have risen 0.4% in August. In September, manufacturing output decreased 0.7%.

The production of motor vehicles and parts fell 7.2%, as shortages of semiconductors continued to hobble operations; factory output elsewhere declined 0.3%.

The output of utilities dropped 3.6%, as demand for cooling subsided after a warmer-than-usual August.

Mining production fell 2.3%, as the lingering effects of Hurricane Ida more than accounted for the drop in September. The hurricane also contributed 0.3 percentage point to the drop in manufacturing.

Overall, about 0.6 percentage point of the drop in total industrial production resulted from the impact of the hurricane.

Despite the decrease in September, total industrial production rose 4.3% at an annual rate for the third quarter as a whole, its fifth consecutive quarter with a gain of at least 4%.

At 100% of its 2017 average, total industrial production in September was 4.6% above its year-earlier level. Capacity utilization for the industrial sector fell 1 percentage point in September to 75.2%, a rate that is 4.4 percentage points below its long-run (1972–2020) average.

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