US manufacturing output rises more than expected in September

PRODUCTION at US factories rose in September led by output gains in both durable and nondurable goods, indicating the manufacturing sector remains on reasonable footing despite the Federal Reserve’s efforts to hamper demand through higher interest rates.

Manufacturing output rose 0.4 per cent last month, keeping pace with an upwardly revised 0.4 per cent gain in August, the Federal Reserve said on Tuesday (Oct 18). Economists polled by Reuters had forecast factory production would rise 0.2 per cent. Output increased 4.7 per cent from a year earlier.

Overall industrial production rose 0.4 per cent, after slipping 0.1 per cent the prior month. Economists polled by Reuters had estimated a 0.1 per cent increase.

Capacity utilisation, a measure of how fully producers are using their resources, rose to 80.3 per cent last month from an upwardly revised 80.1 per cent in August. REUTERS