U.S. industrial output edges up 0.1% in September
WASHINGTON—U.S. industrial output improved slightly in September, suggesting struggling manufacturers and oil producers may be finding their footing in the second half of the year.
Industrial production—a measure of output at factories, mines and utilities—rose a seasonally adjusted 0.1% in September from August, the Federal Reserve said Monday. Overall manufacturing output, which accounts for more than three-quarters of all industrial production, rose 0.2% last month.
Total factory production has increased in three of the past four months, but was flat in September from a year earlier.
Mining production rose 0.4%, its fourth rise in the past five months. The segment, which includes oil drilling, had been battered by a sustained drop in commodity prices. The latest figures suggest the energy sector has stabilized. Still, overall mining output remains 9.4% below its level from a year earlier.
“Through the volatility, the trend in manufacturing is probably slightly better than flat and the plunge in mining seems to have ended,” said Jim O’Sullivan, economist at High Frequency Economics.
Utilities output was down 1% from the prior month in August.
Capacity utilization, a measure of how much industries are making as a share of potential output, rose 0.1 percentage point to 75.4%. Last month’s rate was 4.6 percentage points below the long-run average, suggesting there is still ample slack across the economy.
