Industrial production skidded last month

October 17, 2024

September industrial production fell 0.3%, weaker than the consensus expectation of down 0.2%. A strike at a major producer of civilian aircraft, as noted by the Federal Reserve, detracted 0.3% from industrial output while the effects of two hurricanes subtracted 0.3%. Meanwhile, August production was revised sharply lower to a positive 0.3% from the previously reported gain of 0.8%.

Manufacturing output fell 0.4%, driven lower by output of aerospace and miscellaneous transportation equipment, which plunged 8.3% due to strike action by aircraft workers. This was the largest drop in aerospace output since COVID, when production fell 22% in April 2020. A 1.5% drop in motor vehicles and parts production and a 0.1% decline in machinery production contributed to the weakness in manufacturing output.

Mining output fell 0.6% as oil and gas extraction facilities were held up by the effects of two hurricanes – Francine and Helene. Business equipment output fell 3.5% with information processing production down 0.3%.

The only area of discernible increase in September was utility output, up 0.7%. Contributions came from natural gas production, up 2.1%, and electric output, up 0.5%.