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US factory production falls in August; costs weigh on outlook

US factory production unexpectedly fell in August, with higher oil prices and rising interest rates potentially offsetting some support from an artificial intelligence buildout and keeping activity moderate for the rest of the year.

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US factory production unexpectedly fell in August, and higher oil prices and rising interest rates could offset some of the support from an artificial intelligence buildout, likely keeping activity moderate for the rest of the year. The decline in output was reported by the Federal Reserve.