Q3 capacity utilization came in at 78.5%, missing estimates of 79.3% but up from 77.6% in Q2 - with broad-based improvements in production efficiency. The gain in construction was notable, given it was the first in nine quarters…

… and manufacturing rebounded 1.2% after a weaker Q2, as it continues to close the gap to industrial capacity utilization.

Non-durable goods were the primary driver, thanks to an 11 point increase in petroleum and coal products Q/Q…

… while manufacturing efficiency in durable goods was mixed, with strength in transportation and furniture offsetting weakness in electrical equipment.