Key facts
- Manufacturing output rose 0.3% in September, beating expectations.
- Third-quarter manufacturing output grew at a 0.7% annualized rate.
- Overall industrial production increased 0.7% in September.
- Capacity utilization for the industrial sector rose to 76.9%.
US factory production increased in September, but the pace of growth slowed considerably in the third quarter due to supply chain disruptions and rising energy prices linked to the Middle East conflict. Manufacturing output rose 0.3% last month, rebounding from a revised 0.2% decline in August, and meeting economists' expectations. Overall industrial production also saw a gain of 0.7% in September. Durable goods manufacturing saw a slight increase, driven by primary metals, machinery, and electrical equipment, though motor vehicle production fell. Nondurable manufacturing production rose, while mining and utilities also contributed positively to the industrial output figures. Capacity utilization for the industrial sector improved to 76.9% from 76.4% in August.