Meet the Decision Makers: The Governor’s Key Advisors - December 13, 2021 REGISTER

Manufacturing output decreased 0.7% in September following a 0.4% decline in August, reflecting supply chain disruptions, labor shortages and rising materials costs, according to the latest data released this week by the Federal Reserve.

A global semiconductor chip shortage continues to hamper motor vehicle manufacturing, with production in this sector down 7.2% in September, and down 15.8% since January. Excluding motor vehicles and parts, manufacturing output elsewhere fell 0.3%.

Overall, durable and nondurable goods production decreased 0.5% and 1.0%, respectively, in September. The output of other manufacturing declined 0.2%.

Removing the steep drop in auto production and parts from the calculation, durable goods moved up 0.5% with gains of 1% or more in the production of primary metals; electrical equipment, appliances and components; aerospace and transportation equipment; furniture and related products; and miscellaneous manufacturing.

The output of nondurable goods fell 1%. The largest decreases were recorded by chemicals and by petroleum and coal products. The largest increases were recorded by printing and support, and by textiles and product mills.

Last month’s decline in manufacturing output combined with a 2.3% decrease in mining and a 3.6% drop in utilities to pull down overall industrial production by 1.3%. The Fed noted, however, that third quarter industrial production is still up 4.3% year-over-year.