Overview
- Federal Reserve figures released Friday showed industrial production increased 0.7% in September, factory output rebounded 0.3%, and capacity utilization rose to 76.9%.
- Utilities output jumped about 3.5% in September, with electric utility use climbing sharply and materially lifting the overall monthly reading.
- Semiconductor production rose strongly, with a 2.1% monthly gain and a 28.4% annualized surge in the third quarter that drove much of durable‑goods growth.
- Motor vehicle and parts production fell 3.0% in September and vehicle assemblies declined, leaving the auto sector a clear drag on overall manufacturing.
- Quarterly momentum slowed as industrial growth fell to a 0.7% annualized rate in Q3 from 5.6% in Q2, and economists warn that higher energy costs, trade frictions and rising borrowing costs could push up goods prices and weigh on consumer demand.