Industrial production increased 0.7% in September, after edging up 0.1% in August. In September, manufacturing output increased 0.3%, and the index for mining and utilities rose 0.2% and 3.5% respectively. Manufacturing output excluding motor vehicles and parts edged up 0.5%. At 104.0% of its 2017 average, total industrial production in September was 2.2% above its year-earlier level. Capacity utilization moved up to 76.9%, a rate that is 2.5 percentage points (pp) below its long-run (1972–2025) average.
All major market groups posted gains in September except business equipment, which was unchanged. The production of consumer goods rose 0.7%, reflecting an increase in the index for nondurable goods that more than offset a decline in the index for durable goods. Output of defense and space equipment rose 0.4%. The index for construction supplies increased 1.0%, and the index for business supplies rose 0.9%. Materials output moved up 0.7 percent, with gains in its energy and non-energy components.
Manufacturing output rose 0.3% in September. The index for durable manufacturing edged up 0.1%. Within durables, primary metals, machinery, and electrical equipment, appliances, and components each posted gains of 1% or more. Output of motor vehicles and parts declined 3.0%. The nondurable manufacturing index increased 0.4%, led by gains in the indexes for printing and support and for chemicals. In the third quarter, durable manufacturing output rose at an annual rate of 3.8%, driven in part by a 28.4% gain in the output of semiconductors and related electronic components, while nondurable manufacturing output fell 1.6%.
Mining output grew 0.2% in September. The output of utilities rose 3.5% in September, with gains in the indexes for electric utilities and for natural gas utilities.
Capacity utilization for manufacturing edged up 0.1 pp to 75.9% in September, which is 2.3 pp below its long-run (1972–2025) average. The operating rate for mining edged up 0.1 pp to 87.5%, and the operating rate for utilities moved up 2.3 pp to 73.8%. The utilization rate for mining was 2.3 pp above its long-run average, while the rate for utilities remained substantially below its long-run average.
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