US Industrial Productivity Hammered by Ida Last Month, Fed Reports

Industrial production in the U.S. fell 1.3 points in September, the Federal Reserve reported October 18. Like in February, when industrial production fell 3.1 points, the negative impact on productivity was caused by semiconductor shortages and severe weather—in September’s case, Hurricane Ida. The Federal Reserve attributed 0.6 points of the decline to the storm. The September results are the steepest decline in industrial production since February 2020, when severe winter storms hit Texas and the Gulf Coast, leading to some extended blackouts and damage. In addition to the September dip, the Federal Reserve adjusted its August results. After initially reporting industrial production rose 0.1 points, the adjusted figure now shows it fell by 0.4 percentage points.