2017.10.1803:47:00UTC+00U.S. Industrial Output Rebounds Marginally in September

U.S. industrial production rose slightly in September as persisting effects of storms Harvey and Irma hindered activity at factories. However, the outlook for the industrial sector continues to be bullish amid a strengthening global economy and weakening dollar.

The disappointing industrial production data was counterbalanced by another report, which showed import prices reporting their largest increase in 15 months in September, and moderately increasing underlying imported inflation.

According to the Federal Reserve, industrial production rose 0.3 percent in September following a 0.7 percent decline in August which was smaller than previously posted. The U.S. central bank said the “continued effects of Hurricane Harvey and, to a lesser degree, the effects of Hurricane Irma combined to hold down the growth in total production in September by a quarter percentage point."

The Fed revised the data for July to reveal that industrial output dropped 0.1 percent rather than the initially posted 0.4 percent rise. Industrial output declined at an annual rate of 1.5 percent during the third quarter.

Manufacturing output rose 0.1 percent in September following a 0.2 percent decline in August. Production was constricted by a 2.6 percent tumble in the production of nondurable chemical products.

Despite the hurricane-related blow, manufacturing, which accounts for nearly 12 percent of the U.S. economy, remains on strong ground amid a softening dollar, firming global economy and inventory accumulation by businesses.

Factory sentiment is also at multi-year peaks. In September, mining production climbed 0.4 percent, reflecting gains in oil and gas extraction. Utilities production was up 1.5 percent in the month.