U.S. manufacturing output fell 0.3% in August, far below economists' forecast of a 0.3% increase and the first decline this year, data from the Federal Reserve showed on Friday. Factory capacity utilization dropped to a five-month low of 75.7%. The cooling in output was influenced by a slowdown in business equipment production, rising oil and other raw material costs, and supply chain disruption pressures from the Middle East and the war in Ukraine. Analysts at Morgan Stanley noted that rising energy prices and geopolitical risks may have begun to show initial signs.