Industrial production in the US unexpectedly showed a steep decline in September, the Federal Reserve (Fed) revealed in a report released on Monday. The Fed said industrial production fell a sharp 1.3 per cent in September, below expectations of a 0.2 per cent gain.

Adding to the sense of gloom in the report, the prior month’s industrial output figure was revised to a fall of 0.1 per cent compared to the prior estimate of a 0.4 per cent gain. This was the biggest decline in industrial production since February, when winter storm Uri wreaked havoc in Texas. Manufacturing had been a bright spot in the US economy, even though the sector is struggling with supply bottlenecks.

Inflation in the UK slowed unexpectedly in September, but the decline was probably only a temporary respite for consumers and is unlikely to deter the Bank of England (BoE) from raising interest rates, possibly as soon as next month.

Consumer prices rose 3.1 per cent in annual terms in September, pulling back from 3.2 per cent in August, the Office for National Statistics said. Economists had forecast inflation to remain unchanged from the prior month. Core inflation that excludes energy, food, alcoholic beverages and tobacco, slowed to 2.9 per cent from 3.1 per cent in the previous month.

China’s third-quarter GDP grew by a disappointing 4.9 per cent in September- Bank of Valletta

As inflation is still above the three per cent rate the Bank of England forecast back in August, it is unlikely to significantly reduce expectations that the BoE will raise interest rates before the end of the year, said Paul Dales, an economist at Capital Economics.

China’s third-quarter GDP grew by a disappointing 4.9 per cent in September as industrial activity rose less than expected. The National Bureau of Statistics said on Monday that GDP grew by 4.9 per cent in the third quarter from the same period last year. That missed expectations for a 5.2 per cent expansion. Industrial production rose by 3.1 per cent in September, below the 4.5 per cent expected by economists.

“Since entering the third quarter, domestic and overseas risks and challenges have increased,” said Fu Linghui, spokesperson for the National Bureau of Statistics.

This report was compiled by Bank of Valletta for general information purposes only.