US factory output falls in supply-chain woes

NEW YORK. Production at US factories fell by the most in seven months in September, in part reflecting a sharp pullback in the manufacturing of motor vehicles as well as broader backlogged supply chains and materials shortages.

The 0.7 per cent decrease for manufacturers followed a revised 0.4 per cent decline in August, Federal Reserve data showed yesterday. Total industrial production, which also includes mining and utility output, fell 1.3 per cent last month.

The median estimate called for a 0.1 per cent monthly increase in both factory production and industrial output. Stocks fell and Treasury yields were up after market open. Resilient demand among firms and consumers has kept production elevated, but it’s also contributed to order backlogs.