Thursday, October 16, 2014

Industrial Production Rebounded in September

Industrial production grew 1.0% in September. The largest gain this year more than offset a decline the month prior. All three major components increased, with the largest gain in utilities. The six-month annualized growth rate increased to 3.9%. Year-over-year growth was 4.3%, an increase from August and the fifth consecutive month of improvement.

Manufacturing growth improved 0.5% in September, led by a 0.8% increase in high-tech. Manufacturing is the core component of industrial production and does not fluctuate like mining and utilities. As such, growth in manufacturing demonstrates that the core of industrial production is improving.

Mining production increased 1.8%, a massive uptick from the month prior. Utilities production jumped 3.9%, driven by a 4.5% growth in electric. The capacity utilization ratio improved in September, rising 0.6% to 79.3%.

Read the Federal Reserve release.

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