Manufacturing production declined 0.1 percent in September, extending the 0.4 percent decrease observed in August.
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August’s decline was revised to a 0.1% fall from an initially reported 0.4% drop. Mining output was down 5.7% year-on-year.
Industrial output slipped 0.2 percent, matching the median forecast among analysts polled by Reuters.
All in all, weak exports continue to plague industries in America, and a weak oil sector only means ever more weakness to be expected from the US energy sector, which had been such a bright spot. Oil and gas well drilling decreased 4 percent. Private-sector economists estimate the economy grew at around a 1% annual rate in the third quarter, down from the spring’s 3.9% rate.
A rising US currency has most USA goods more costly in overseas markets, with the decline in demand in foreign markets partially offset by strong consumer demand for automobiles.
“Excluding autos, output growth is -0.1 percent on the year, showing that there is not much upside in the economy”, he said. A strong gain for motor vehicles and parts contributed substantially to the quarterly increases.
(Output was slightly negative in June, but essentially unchanged, as reported in the report.) In addition to declines in manufacturing in September, mining production was also lower, down 2.0 percent for the month.
There were declines in the production of computer and electronic products, as well as electronic equipment, appliances and components.
The dollar pulled away from seven-week lows on Friday, after better-than-expected USA inflation data kept alive bets the Federal Reserve would raise interest rates this year, and as expectations grew for more euro zone easing.
Capacity utilization in the manufacturing and mining sectors fell to 75.9 percent and 81.9 percent, respectively, while capacity utilization in the utilities sector climbed to 79.8 percent.
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Warmer-than-usual temperatures in September led to a 1.3% increase in the output of utilities.
