Measure of factory, mining and utility output remains 7.1% below where it was in February, before the pandemic hit
Wsj – U.S. industrial production fell in September, snapping four months of growth, in another sign of a slowing recovery.
The Federal Reserve on Friday said its index of industrial production—a measure of output at factories, mines and utilities—fell a seasonally adjusted 0.6% in September, following an unrevised 0.4% rise in August.
Output remains 7.1% below where it was in February, before the pandemic hit, the Fed said.
The decline in industrial production shows “a concern that the industrial recovery appears to be stalling with output well below its pre pandemic level,” Andrew Hunter, senior U.S. economist at Capital Economics, wrote in a note to clients. A recent increase in new coronavirus cases raises the possibility that factories could shut down once more, he said.
MORE ON THE ECONOMY
- Social Security Benefits to Rise 1.3% in 2021 October 13, 2020
- Global Outlook Brightens as U.S. Consumer Imports Reach Pre-Pandemic Levels October 6, 2020
- Job Gains Slow as More Layoffs Become Permanent October 2, 2020
- Jobless Claims Hold Steady for Fifth Straight Week October 1, 2020
Industrial production fell at a record pace in the spring as factories were closed to halt the spread of the coronavirus. The Fed’s index plunged in March and April, rebounded in June and July and has stalled since.
Notes on the News
Manufacturing, the biggest component of production, fell 0.3%, after rising 1.2% in August.
Utility production fell 5.6% due to a decline in air conditioning use, the Fed said. Mining output rose 1.7%.
Capacity utilization, a measure of slack in the