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US industrial production falls sharply in September led by drop in auto output

By Alexander Bueso

Date: Monday 18 Oct 2021

LONDON (ShareCast) - (Sharecast News) - US industrial production dropped unexpectedly last month, registering across-the-board declines by sectors.
According to the Department of Commerce, in seasonally adjusted terms, total output shrank at a month-on-month pace of 1.3%.

That compared to a 0.3% rise as forecast by economists.

Manufacturing production dropped by 0.7% in comparison to the prior month, while in Mining output declined by 2.3% and that of Utilities fell 3.6%.

Not surprisingly, the rate of capacity utilisation also undershot by a wide margin, coming in at 75.2% (consensus: 76.5%).

Auto manufacturing paced declines, dropping by 7.2% versus August while that of durable goods as a whole shrank by 0.5%.

Durable goods output was otherwise 0.5% higher with gains of over 1.0% in primary metals, electrical equipment, appliances, and components; aerospace and miscellaneous transportation equipment; furniture and related products; and miscellaneous manufacturing.

Production of nondurable goods meanwhile fell by 1.0%.