Industrial Production Rises in October

Industrial production rose 1.6% in October after falling 1.3% in September, according to a report from the U.S. Federal Reserve.
Industrial Production Rises October 2021

Industrial production rose 1.6% in October after falling 1.3% in September, as about half of the gain in October reflected a recovery from the effects of Hurricane Ida, according to the U.S. Federal Reserve.

Manufacturing output increased 1.2% in October. Excluding a large gain in the production of motor vehicles and parts, factory output moved up 0.6%. The output of utilities rose 1.2%, and mining output stepped up 4.1%.

At 101.6% of its 2017 average, total industrial production in October was 5.1% above its year-earlier level and at its highest reading since December 2019.

In October, capacity utilization for the industrial sector increased 1.2 percentage points to 76.4%; even so, it was still 3.2 percentage points below its long-run (1972–2020) average.

The Fed said all major market groups posted gains in October. The largest increases were for materials, consumer goods and defense and space equipment.

The index for consumer goods advanced 1.4 %, an increase driven mostly by a rise in automotive products.

The index for materials moved up 2.3%, with gains in its durable, nondurable and energy components. The increase in durable materials included a sizable contribution from motor vehicle parts, while the gains in nondurable and energy materials largely reflected a return to operation for many chemical and energy facilities that had been offline due to Hurricane Ida.

Manufacturing output rose 1.2%, its highest level since March 2019.

The indexes for both durable and nondurable goods advanced 1.3%, while the index for other manufacturing (logging and publishing) fell 1.5%. Within durables, the largest increase was posted by motor vehicles and parts, while a strike at a major manufacturer contributed to a decrease of 1.3% for machinery.

Within nondurables, the index for petroleum and coal products moved up 5%. Gains of more than 1% were also recorded by printing and support and by chemicals.

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