US Manufacturing Output Rises 0.3%, Q3 Growth Slows

The Federal Reserve reported on Oct. 16, 2026 that US manufacturing output rose 0.3% in September, matching economists' expectations after August was revised to a 0.2% decline from a prior 0.3% drop. Output was up 1.1% year-over-year. Third-quarter growth slowed to a 0.7% annualized rate from 5.6% in the second quarter. Manufacturing accounts for about 9.4% of the economy. Durable goods output rose 0.1% in September while motor vehicle and parts production fell 3.0%. Semiconductors and related electronic components surged 28.4% in the third quarter, with durable goods rising at a 3.8% rate. Diesel prices hit a record $6.29 a gallon in September 2026, up 15.2%, amid the continuing US-Israeli conflict with Iran. Left-leaning coverage (CNBC) framed September output as stronger than expected. Right-leaning coverage (The Straits Times) framed the same 0.3% rise as output hurt by Mid-East conflict and energy costs—same number, different causal spin.