US Industrial Production Rises 0.7% in September

The United States reported that industrial production grew by 0.7% month-over-month in September, exceeding consensus forecasts of 0.4% to 0.5%. This increase represents the fastest pace of growth in four years and the sixth consecutive month of gains, lifting the annual growth rate to 2.25%, the highest level since September 2022.

Growth was primarily driven by a 3.5% surge in the utilities sector, alongside a 0.3% increase in manufacturing and a 0.2% rise in mining. While semiconductors and related components performed strongly, durable manufacturing was weighed down by a 3.0% decline in motor vehicles and parts.

Capacity utilization reached 76.9%, surpassing the expected 76.5% and marking the highest level since December 2023. Despite this rise, the figure remains 2.5 percentage points below the long-run average recorded from 1972 to 2025.

Analysts suggest the utilities-driven increase reflects seasonal energy demand rather than broad economic strength. This interpretation may weaken the argument for the Federal Reserve System to implement additional interest rate hikes in December.