The massive storm that hit the Gulf Coast of Texas late that month is estimated to have cut U.S. industrial production by three-quarters of a percentage point, the report said.

Total industrial output fell by 0.9 percent compared to July, driven down by the 0.3-percent drop in manufacturing, which included big drops in output for oil, chemicals and plastics, as well as a 0.8-percent drop in the mining sector, due to disruptions in drilling and extraction.

At the same time, industrial capacity in use dropped to 76.1 percent, down eight-tenths from the prior month as the storm forced major shutdowns.

Economists had forecast an increase of 0.2 percent in industrial production and a slight rise in capacity utilization, apparently not factoring in the likely impact of the hurricane on a major U.S. industrial hub.

Read Full Article