September’s growth in US industry is really a downshift, if you look closely

Just-released industrial production data for the US didn’t look so bad at first. Month-over-month, industrial output expanded by 0.6% in September, slightly better than expected.

But the better-than-expected news was largely driven by a weather-related rebound in utility production.

Meanwhile, manufacturing production rose a disappointing 0.1% in September, compared to August. And excluding manufacturing of autos and auto parts, it was dead flat.