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America's factories were hurt by shortages of workers and supplies last month - CNN
Oct 18, 2021 42 secs
The industrial production index measures output from the manufacturing, mining and electric and gas utilities industries.

Similarly, the rate of capacity utilization — which measures the amount of industrial factory capacity that's currently in use — was lower than expected at 75.2%.

That's the lowest level since April.

But even though the September data was worse than expected, it doesn't mean America's factories are stagnating, economists from Citi said.

The hurricane impact will peter out and even though shortages continue to hamstring various parts of the economy, the recovery is coming along steadily.

Bad news for GDP?

Still, this is bad news for third-quarter economic activity because "industrial production growth is closely tracking GDP growth in 2021, and likely 2022," said Action Economics' chief economist Mike Englund.

The aftermath of Hurricane Ida also contributed to the drop in manufacturing and drove a decline in mining.

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