Thanks to an aircraft machinists strike, the Gulf Coast hurricanes, and the Fed's restrictive monetary policy, output fell by 0.3%, after rising 0.3% in August.

Even with the pickup, the three-month average eased to 119,000, one of the lowest levels since 2020.

Bookings for all durable goods—items meant to last at least three years—stalled on fewer orders for commercial aircraft.

The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, decreased 0.1% last month.

New home construction and manufacturing came in softer than expected, while retail sales fell and underlying inflation took its first step down in six months.

The second-straight increase in core capital goods orders points to stabilization in equipment investment, which has been a drag on GDP in recent quarters.

The value of exports edged up 0.1%, but imports rose 1.1%, led by capital goods and motor vehicles.

For the first time in three months, output fell in January, driven in part by declines in output of automobiles, machinery, and metals.