Factory production increases less than forecast

Factory production in the U.S. rose less than forecast in September, indicating a pause in manufacturing leading into the budget battle that partially closed the federal government. More

To continue reading this article, please do one of the following.



manufacturing

Factory production increases less than forecast

BLOOMBERG FILE PHOTO/ARIANA LINDQUIST
FACTORY PRODUCTION IN THE U.S. rose 0.1 percent in September, falling short of the 0.3 percent increase anticipated in a Bloomberg survey of economists after a partial shutdown of the federal government affected corporate confidence.
Posted 10/28/13

WASHINGTON – Factory production in the U.S. rose less than forecast in September, indicating a pause in manufacturing leading into the budget battle that partially closed the federal government.

Output at factories rose 0.1 percent after a revised 0.5 percent gain in August that was smaller than initially estimated, figures from the Federal Reserve showed today in Washington. The median forecast of economists in a Bloomberg survey called for a 0.3 percent September gain. Total industrial production, which also includes output by mines and utilities, advanced 0.6 percent as higher temperatures drove up electricity use.

The figures showed declines in production of such non- durable goods as chemicals and textiles, while output of autos and business equipment rose. An acceleration in manufacturing, which accounts for about 12 percent of the economy, depends on whether corporate confidence improves in wake of the partial government shutdown that lasted for half of October.

“We are in a kind of status-quo, muddle-along mode,” Eric Green, global head of foreign exchange and rates at TD Securities USA LLC in New York, said before the report. “You’ve also had a bit of a hiccup here in terms of business confidence” because of the budget battle in Washington, he said.

Stock-index futures were little changed after the figures, with the contract on the Standard & Poor’s 500 Index expiring in December falling less than 0.1 percent to 1,753.3 at 9:19 a.m. in New York.

Economists’ forecasts

The median forecast in a Bloomberg survey of 85 economists called for a 0.4 percent advance in September industrial production. Estimates ranged from a drop of 0.3 percent to an increase of 0.8 percent. Manufacturing, which accounts for about 75 percent of total production, was previously reported as rising 0.7 percent in August.

Factory production in China has shown signs of picking up. Industrial output in September climbed 10.2 percent from the same month last year, according to Oct. 18 figures from the Beijing-based National Bureau of Statistics. In June, the year-over-year increase was 8.9 percent.

Next Page
Calendar
PBN Hosted
Events

Two Great Programs...One Great Event. PBN's Annual Celebration of Growth and Innovation is now underway. 2014 applications are now available. Deadline August 1st.
  • 40 Under Forty
    We're almost sold out. The 10th Anniversary of 40 Under Forty, and PBN is planni ...
  • Healthiest Employers
    Save the date - August 14th - at the Providence Marriott for the 3rd annual Heal ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement