Industrial production declined 0.6% in October, according to the Federal Reserve. September’s reading was revised downward to 0.1% and August’s reading remained the same, while the readings for the previous months remained largely unchanged. Total industrial production in October was 0.7% below its year-ago level. Capacity utilization decreased 0.6 percentage points (pp) to 78.9%, in line with its long run (1972-2022) average.
Manufacturing output fell 0.7% in October, following a downward revision to 0.2% in September, and is 1.7% below October 2022 levels. Much of the decline was due to a 10% drop in output of motor vehicles and parts stemming from strikes at several major auto manufacturers. Excluding motor vehicles and parts, the index for manufacturing edged up 0.1%.
There were also decreases in the indices for primary metals (-1.7%), furniture and related products (-1.4%), and plastics and rubber products (-2.2%). These were offset by increases in the index for computer and electronic products (+1.9%) and petroleum and coal products (+2.2%).
Production of durable goods decreased 1.3% while nondurable goods production edged down 0.1%. Capacity utilization for manufacturing moved down 0.6 pp to 77.2% in October, which is 1 pp below its long-run (1972-2022) average.
Mining output increased 0.4% in October, following no change in September. The index in October was 2.2% above its year-earlier level.
Utilities decreased 1.6%, following a 0.6% decrease in September. The index in October was 2.9% above its year-ago level.
Read the Fed release.
