U.S. industrial output falls again in September

US manufacturing production fell for the second straight month in September as factories cranked out fewer appliances, computers, and electronics.

Total industrial output fell by 0.2 per cent in September after a downwardly revised 0.1 per cent drop in August, the Federal Reserve reported on Friday. The industrial sector continues to be compromised by a declining global economy and stronger dollar that have diminished requirement for US manufactured goods. Capacity utilization decreased from 77.8 percent in August to 77.5 percent in September. Oil and gas well drilling decreased 4 percent. On a year-over-year basis, manufacturing production increased 1.4 percent in September, down from 1.8 percent in August and off sharply from the 4.3 percent observed in January.

The poor industrial production record combined with poor trade, retail sales and employment information, which have hinted at a substantial downturn in development, following that the economy enhanced at a 3.9% yearly speed within the second quarter.

Manufacturing productivity dropped 0.1 % although strong demand for automobiles raised motor vehicle and components production by 0.2%.

Capacity utilization came in at 77.5% in September. The annualized rate for light truck and auto purchases reached 18.1 million in September, its highest level since July of 2005. Meanwhile, the sharp decline in oil prices over the past 15 months has caused energy companies to scale back drilling, contributing to a 2% drop last month in mining output.

The economy still appears to be expanding, though at a subdued pace, due to spending by US consumers, an improving housing market and continued gains in the jobs market. Company gear and building supplies output also witnessed a decline.

Other recent reports underscore a struggling industry.

Fed policy makers, weighing whether to raise interest rates this year for the first time since 2006, are monitoring economic data for signs that headwinds such as cooling overseas markets may be spilling over into the USA and pose a risk to the expansion.