The numbers: Industrial production rose 0.4% in August after a revised 0.8% gain in the prior month, the Federal Reserve reported Wednesday.
The gain was below economist expectations of a 0.5% gain, according to a survey by the Wall Street Journal.
The Fed said that late month shutdowns related to Hurricane Ida held down production by 0.3 percentage point.
Capacity utilization rose to 76.4% in August, the highest rate since December 2019. The capacity utilization rate reflects the limits to operating the nation’s factories, mines and utilities. It’s still below levels that could fan production costs and prices.
Big picture: This is the sixth straight gain in industrial output. Economists say the sector’s main problem is that it can’t meet all of the demand.
Market reaction: Stocks
were mixed at the open Wednesday as worries about China’s economy were offset by strong September Empire state factory data from the New York Fed.