US: Solid September caps softer 3Q for manufacturing

Manufacturing activity rebounded in September, with factory output rising 0.3% on the month following a 0.2% decline in August. A strong 3.5% increase in utilities output helped lift total industrial production 0.7% m/m. With all three months of last quarter now in hand, manufacturing output rose 0.7% q/q, saar in 3Q, while total IP grew 2.9%. While that marked a notable downshift from 2Q, when manufacturing and total IP expanded at annualized rates of 5.5% and 4.9%, respectively, early October regional manufacturing surveys continue to point to solid factory activity at the start of 4Q, though input cost and supply chain pressures remain a concern. September's gain in factory output came despite continued weakness in motor vehicle production, which fell 3.0% m/m and is now down 15.1% ar over the past three months. Elsewhere, manufacturing activity was considerably stronger, with output excluding motor vehicles and parts rising 0.5% m/m. High-tech production increased 1.5%, its sixth c