U.S. industrial output dropped sharply in September

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Industrial production fell a sharp 1.3% in September, the Federal Reserve reported Monday.

Adding to the sense of weakness in the data, industrial output in August was revised to a fall of 0.1% versus the prior estimate of a 0.4% gain.

Capacity utilization fell to 75.2% in September, the lowest rate since April.

This is the biggest decline since February, when Winter Storm Uri wreaked havoc in Texas. Manufacturing had been a bright spot even though the sector is struggling with supply bottlenecks.

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Some of the weakness was due to Hurricane Ida. The hurricane cut about 0.6 percentage points from the drop in total industrial production, the Fed said.

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Output at manufacturers fell 0.7% in September, led by a 7.2% drop in production of motor vehicles and parts. Excluding the auto sector, manufacturing was down 0.3%.

Utilities output fell 3.6% in September. Mining output, which includes oil and natural gas, fell 2.3% due to lingering effects of Hurricane Ida. www.marketwatch.com/story/u-s-industrial-output-drops-sharply-in-september-11634563290?mod=mw_latestnews

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