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U.S. industrial production declined in September due to factors such as a strike at Boeing and the impact of hurricanes. The Federal Reserve reported a 0.3% decrease in industrial output last month, following a revised 0.3% increase in August. This was slightly worse than the 0.2% decline forecasted by economists. The Boeing strike and hurricanes were estimated to have had a combined 0.6% negative effect on industrial production.

Factory output fell by 0.4% in September, with manufacturing showing a year-on-year decline of 0.5%. The overall industrial production dropped by 0.6% year-on-year. The U.S. Central bank‘s recent interest rate cuts have yet to significantly impact the manufacturing sector, which accounts for 10.3% of the economy.

Within manufacturing, motor vehicle and parts production decreased by 1.5%, while aerospace and miscellaneous transportation equipment output plummeted by 8.3%. Durable manufacturing production saw a 1.0% decline, while nondurable manufacturing production increased by 0.2%. Mining output fell by 0.6% in September, and utilities production rebounded by 0.7%.

Capacity utilization for the industrial sector dipped to 77.5% in September, below the long-run average. The operating rate for the manufacturing sector also decreased to 76.7%. Despite the recent interest rate cuts by the Federal Reserve, the manufacturing sector continues to face challenges that may take time to overcome.

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