Industrial Production Falls 1.3% as Effects From Ida Linger
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SILVER SPRING, Md. — U.S. industrial production fell 1.3% in September, much more than expected as the lingering effects of Hurricane Ida continue to stymie activity.
The Federal Reserve reported Oct. 18 that nearly half, or 0.6%, of the overall decline in total industrial production was attributable to the hurricane. The Fed revised August’s reading down from a 0.4% gain to a 0.1% decline.
Industrial production covers manufacturing, utilities and mining. The government said manufacturing output fell 0.7%, dragged down by a 7.2% decline in motor vehicles and parts as shortages of semiconductors continued to thwart the industry. Outside of the auto industry, factory output declined 0.3% the government said.
Lingering effects from Hurricane Ida held down growth by 0.6ppt for Total and by 0.3ppt for Mfg. #CapacityUtilization 75.2% (2/2) https://t.co/FDgD61raHw #FedData — Federal Reserve (@federalreserve) October 18, 2021
Utilities output dropped 3.6% while mining production fell 2.3%.
Capacity utilization for the entire industrial sector fell 1% in September to 75.2%, about 4.4% below its average.
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