US factory output rose 0.3% in September as quarterly growth slowed

US factory output rose 0.3% in September, recovering from a revised 0.2% decline in August.

Third-quarter growth slowed to a 0.7% annualised rate, down from 5.6% in the second quarter.

Manufacturing makes up about 9.4% of the US economy, and AI investment is supporting factory activity, including a quarterly surge in semiconductor production.

The Middle East conflict is disrupting supply chains and raising energy prices, adding pressure on manufacturers.

Higher costs could feed into prices for goods and weigh on consumer demand, while trade tensions with Canada and rising borrowing costs are also risks.

The figures show a rebound in September, but factory growth lost momentum over the quarter.