According to www.ttnews.com, U.S. factory output declined by 0.3% in August — its first monthly drop of the year — as reported by Federal Reserve data released on September 18, 2026. The decline contrasted sharply with the 0.3% increase forecast by economists in a Bloomberg survey. Total industrial production — which includes mining and utilities — remained unchanged overall.
Manufacturing Sector Under Pressure
The manufacturing slowdown was broad-based but especially pronounced in key equipment categories. Business equipment output fell 0.5%, while auto production dropped 1.2% month-on-month. Defense and space equipment output also declined 1.2% after prior months of strength. These declines occurred amid rising input costs for oil and other materials, as well as supply-chain disruptions linked to ongoing conflicts in the Middle East and Ukraine.
Production of construction supplies, home electronics, and information processing equipment also contracted. Meanwhile, output of computer and electronic products, furniture, and primary metals declined last month. In contrast, machinery, apparel, and textiles posted gains. Excluding motor vehicles, manufacturing output still fell 0.2%.
Cooling Capacity Utilization
Factory capacity utilization — a measure of how much of potential output is being used — slipped to 75.7%, marking a five-month low. The overall industrial utilization rate held steady, however. Utility production rose 1.8%, driven by increased electricity demand, while mining output edged upward.
Despite the August dip, business equipment and defense and space equipment output remained notably higher than year-ago levels. The report characterizes the decline as a pause in this year’s manufacturing upswing, which had been supported by robust capital spending and resilient consumer demand.
Source: Transport Topics
Compiled from international media by the SCI.AI editorial team.
