Production at U.S. factories rose in September led by output gains in both durable and nondurable goods, indicating the manufacturing sector remains on reasonable footing despite the Federal Reserve's efforts to hamper demand through higher interest rates.

Manufacturing output rose 0.4% last month, keeping pace with an upwardly revised 0.4% gain in August, the Federal Reserve said on Tuesday. Economists polled by Reuters had forecast factory production would rise 0.2%. Output increased 4.7% from a year earlier.

Overall industrial production rose 0.4%, after slipping 0.1% the prior month. Economists polled by Reuters had estimated a 0.1% increase.

Capacity utilization, a measure of how fully producers are using their resources, rose to 80.3% last month from an upwardly revised 80.1% in August.