US manufacturing output fell 0.3% in August, ending seven consecutive monthly gains and missing economists' forecast for a 0.3% increase. The decline followed a 0.2% rise in July and was led by a 0.5% fall in durable-goods output, including a 1.2% drop in motor vehicles and parts and a 1.4% decline in computers and peripheral equipment. Manufacturing production was still 0.9% higher than a year earlier, while semiconductors and related electronic components were up 12.4% year over year despite a 0.1% monthly decline. Overall industrial production was unchanged after increasing 0.2% in July, as a 1.8% gain in utilities and a 0.1% increase in mining offset factory weakness. Higher oil prices, rising Treasury yields and the Federal Reserve's 25-basis-point rate increase to a 3.75%-4.00% range could restrain manufacturing, though AI infrastructure spending, potential defense outlays and inventory restocking remain supports cited by economists. Capacity utilization held at 76.3%, while the manufacturing operating rate fell to 75.7%, both below their long-run averages.