Compared with September 2013, the index is up 4.3%, with the largest changes in yearly growth coming in construction (4.9%) and materials (5.7%). Every category in the Fed’s report is up from a year ago.
Total capacity utilization rose to 79.3%, up 2.9% since September of 2013, but still below the long-run capacity utilization rate of 80.2%.
In September, manufacturing output moved up 0.5%, while the indexes for mining and for utilities climbed 1.8% and 3.9%, respectively. For the third quarter as a whole, manufacturing production rose at an annual rate of 3.5% and mining output increased at an annual rate of 8.7%. The output of utilities fell at an annual rate of 8.5%, for a second consecutive quarterly decline.
Consensus estimates called for a month-over-month production rise of 0.4% and capacity utilization rate of 79%. Combined with the positive readings in the latest report that new claims for jobless benefits dropped sharply, it could indicate the U.S. economy actually is gaining strength. Equities opened down Thursday morning, so investors don’t appear to be convinced that the economy is improving.
ALSO READ: September PPI — From Inflation to Deflation
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