US’s September industrial production fell 1.3%, below forecast

US industrial production fell 1.3% in September on a monthly basis, according to data released by the Federal Reserve on Monday.

Industrial production, which measures the change in the value of output produced by manufacturers and utilities, was expected to rise 0.2% in September, according to market consensus.

The figure for August was revised to 0.1%, down from an increase of 0.4%.

Manufacturing production fell by 0.7% last month, while the 0.2% increase in August was revised down to a decline of 0.4%. The market estimate for August was an increase of 0.1%.

“The lingering effects of Hurricane Ida more than accounted for the drop in mining in September; they also contributed 0.3 percentage point to the drop in manufacturing. Overall, about 0.6 percentage point of the drop in total industrial production resulted from the impact of the hurricane,” the Fed said in a statement.

The capacity utilization rate came at 75.2% in September, also coming below the market estimate of 76.5%.

The utilization rate, which is the percentage of production capacity being utilized and also reflects overall demand in the American economy, was revised down to 76.2%, from 76.4%, for August.