US factory production increased in September, but lost considerable momentum in the third quarter amid headwinds from the Middle East conflict, which has snarled supply chains and raised energy prices. Manufacturing output rebounded 0.3% last month following a revised 0.2% decline in August, the Federal Reserve said on Friday. The rise was in line with economists' expectations. Factory production was previously estimated to have dropped 0.3% in August. Output advanced 1.1% on a year-over-year basis in September. It grew at a 0.7% annualized rate in the third quarter after accelerating at a 5.6% pace in the second quarter.