An index of US industrial production rose in September to the highest level in nearly five years, led by strength in the mining and manufacturing sectors, Bloomberg News reported. The gauge rose 0.3% to 103.6, the highest since December 2018, according to Federal Reserve data published Tuesday. The September increase helped deliver an annualized 2.5% advance in production during the third quarter. Manufacturing output, which excludes mining and utilities, rose 0.4% from a month earlier. In the July-to-September period, industrial production was largely fueled by a surge in utility output and a pickup in mining that included higher oil and gas extraction. Manufacturing is also finding some footing as retailers make progress getting inventories more in line with demand. At the same time, producers are contending with the headwinds of higher borrowing costs, tepid overseas economies and uneven capital goods orders. While recent factory purchasing managers survey data suggest the pace of decline has started to moderate, cost pressures continue to linger. On Monday, a survey of New York manufacturers showed prices paid for inputs remained elevated while the share expecting higher prices received dropped to a three-year low.
