After reporting an unexpected drop in U.S. industrial production in the previous month, the Federal Reserve released a report on Thursday showing that production rebounded by much more than expected in the month of September.
The Fed said industrial production surged up by 1.0 percent in September after edging down by a revised 0.2 percent in August.
Economists had been expecting production to increase by about 0.4 percent compared to the 0.1 percent drop originally reported for the previous month.
A substantial increase in utilities output contributed to the rebound in industrial production, with utilities output soaring by 3.9 percent in September after climbing by 1.2 percent in August.
The report also said mining output jumped by 1.8 percent in September after rising by 0.3 percent in August, while manufacturing output rebounded by 0.5 percent following a 0.5 percent drop in the previous month.
The rebound in manufacturing output came even though the production of motor vehicles and parts saw further downside, falling by 1.4 percent in September after plunging by 7.0 percent in August.
The Fed also said capacity utilization for total industry rose to 79.3 percent in September from a revised 78.7 percent in August. Economists had expected capacity utilization to climb to 79.0 percent.
Capacity utilization in the utilities sector showed a notable increase, jumping to 79.2 percent in September from 76.3 percent in August.
The report said capacity utilization in the mining sector also climbed to 90.1 percent from 89.2 percent, while capacity utilization in the manufacturing sector crept up 77.3 percent from 77.1 percent.
The Fed noted that industrial production increased at an annual rate of 3.2 percent in the third quarter of 2014, roughly its average quarterly increase since the end of 2010.
For the third quarter as a whole, manufacturing output rose at an annual rate of 3.5 percent and mining output increased at an annual rate of 8.7 percent.
On the other hand, the report said utilities output fell at an annual rate of 8.5 percent, reflecting a second consecutive quarterly decline.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
U.S. Industrial Production Rebounds More Than Expected In September
No comments:
Post a Comment