The Federal Reserve reported on Tuesday the U.S. industrial production rose 0.4 percent m-o-m in August, following a revised 3.5 percent m-o-m climb in July (originally a 3.0 percent m-o-m gain).

Economists had forecast industrial production would increase 1.0 percent m-o-m in August.

According to the report, manufacturing output grew 1.0 percent m-o-m in August, although the gains for most manufacturing industries have gradually slowed since June. Meanwhile, the output of utilities fell 0.4 percent m-o-m in August and mining production decreased 2.5 percent m-o-m as Tropical Storm Marco and Hurricane Laura caused steep but temporary declines in oil and gas extraction and well drilling.

Capacity utilization for the industrial sector increased 0.3 percentage points m-o-m to 71.4 percent in August. That was in line with economists’ forecast but 8.4 percentage points below its long-run (1972-2019) average.

In y-o-y terms, the industrial output dropped 7.7 percent in August, following a revised 7.4 percent plunge in the prior month (originally an 8.2 percent decline).