U.S. August industrial output falls 0.1%

Industrial output fell by 0.1% in the month, following an unrevised 0.4% gain in July, the Fed said. The decline was led by a 0.8% drop in production at utilities. Utilities' output rose by a revised 1% in July. Many parts of the United States experienced high temperatures in July.

Economists were expecting industrial production to rise by 0.2%. Year over year, industrial production is up 4.7%.

Manufacturing production was flat in August, the Fed report shows. It rose by a revised 0.4% in July and 0.9% in June. Output at manufacturers was previously estimated to have risen only 0.1%. Production of business equipment fell for the first time since May, by 0.2%. Despite the drop in August, it's up 13.5% year over year.

The moderating rate of industrial production may give the Federal Reserve another reason to hold interest rates steady at its next meeting, scheduled for Sept. 20.

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