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Numbers: US industrial production rose 0.4% in August after a revised 0.8% gain the month before, the Federal Reserve reported on Wednesday.
The gain was lower than economists’ expectations of a 0.5% gain, according to a Wall Street Journal survey.
The Fed said month-end closures related to Hurricane Ida cut output by 0.3 percentage points.
Capacity utilization reached 76.4% in August, the highest rate since December 2019. The capacity utilization rate reflects the operating limitations of factories, mines and utilities in the country. It is still below levels that could drive up production costs and prices.
Big picture: This is the sixth consecutive gain in industrial production. Economists say the main problem with the sector is that it cannot meet all the demand.
Market reaction: DJIA actions,
SPX,
were mixed at Wednesday’s opening, with concerns about the Chinese economy being offset by strong September data on Empire State factories from the New York Fed.
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