U.S. Production Rises Slightly in September

Industrial production increased 0.2% in September, driven by a 7.5% boost in output of motor vehicles and parts, the government reported today.

Many analysts had expected a slight decline. The Federal Reserve said if the motor vehicle category were excluded, industrial production actually edged down last month.

But the Fed also said output was stronger in August and July than previously reported. It revised a 0.2% decline first reported for August to a 0.1% gain. At the same time, it revised an unchanged July level to a 0.2% advance.

The Fed also said the operating rate of the nation’s factories, mines and utilities was unchanged at 83.6%. The operating rate measures not only output but also changes in productivity levels.

Production at manufacturing plants making both durable and non-durable goods rose 0.2% in September, matching a similar gain the previous month.

“Apart from the sharp rise in motor vehicle assemblies, manufacturing output dropped 0.2%,” the Fed reported.