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U.S. industrial output picks up in September

WASHINGTON, Oct 17 (Reuters) - U.S. industrial output rose in September as the effects of Hurricanes Harvey and Irma began to fade and construction and utilities production bounced back, the Federal Reserve said on Tuesday.

Overall industrial production increased 0.3 percent in September after an upwardly revised 0.7 percent decline in August.

However, output in July was revised to a decline of 0.1 percent from the previously reported 0.4 percent gain.

Industrial production data for August had been heavily impacted by the hurricanes which temporarily shut down oil, gas and chemical plants along the U.S. Gulf Coast.

The Fed said that the impact of Harvey and, to a lesser extent, Irma, held back production growth in September by 0.25 percentage point.

Economists polled by Reuters had forecast industrial output rising 0.3 percent in September.

The Fed's measure of the industrial sector is made up of manufacturing, mining, and electric and gas utilities.

The manufacturing sector, which comprises about 12 percent of the U.S. economy, edged up 0.1 percent after an upwardly revised 0.2 percent decline in August.

With overall output rising, the percentage of industrial capacity in use increased 0.2 percentage points to 76.0 percent in September from a downwardly revised 75.8 percent in August. (Reporting by Lindsay Dunsmuir; Editing by Paul Simao)