Industrial production fell 0.2% in September, just as expected, according to the Federal Reserve.
This marked the seventh time this year that this measure of the inflation-adjusted value of manufacturing output came in negative.
As we highlighted on Thursday following more weak regional data, American manufacturing is in recession.
The capacity utilization rate was 77.5%. Economists had estimated a reading of 77.3%.
According to the Fed, consumer goods were the only major market group to gain in September (0.1%). Warmer temperatures last month pushed up the output of electric utilities, as demand for air conditioning offset the lesser need for gas utilities and heating.
In a note to clients, Pantheon Macroeconomics’ Ian Shepherdson wrote, “The hit from falling capex in the oil sector is easing but has been followed by sharply lower exports, thanks to the strong dollar and weaker EM demand. We don’t expect any significant near-term improvement, but remember that manufacturing accounts for only 9% of payrolls and 12% of GDP.”