US Factory Production Falls by the most in Seven Months During September

Production in the United States fell by the most in seven months during September, mostly reflecting a slowdown in the production of motor vehicles as supply chain problems created materials shortages.

Industrial production dropped by 1.3 percent in September, whereas it only fell by 0.1 percent in August, according to Federal Reserve data released on Oct. 18.

Demand from consumers and firms remained strong throughout September, but manufacturers struggled to keep up amid shortages in goods, materials, and labor.

Production of motor vehicles slowed down the most by 7.2 percent due to bottlenecks in supply chains causing shortages in semiconductors, while manufacturing activity dropped 0.7 percent.

Excluding motor vehicles, however, the production of durable goods rose by 0.5 percent. But nondurables, including chemicals, fell 1 percent.

According to the Fed, the effects of Hurricane Ida accounted for a 2.3 percent slowdown in mining activity and contributed to 0.3 percent in the decrease of manufacturing activity — about 0.6 percent of the total drop in industrial production came from Hurricane Ida’s aftermath.

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