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Industrial Production Falls 1.3% as Effects From Ida Linger

Editorial Staff by Editorial Staff
October 19, 2021
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Industrial Production Falls 1.3% as Effects From Ida Linger

U.S. industrial production fell 1.3% in September, much more than expected as the lingering effects of Hurricane Ida continue to stymie activity.

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 Monday 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.

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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