Industrial production unexpectedly fell last month.
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Capacity utilization fell to 77.5% in October from an upwardly revised 77.7%, in line with expectations.
Economists note that USA factories are struggling given the plunge in oil companies’ business investment, the strong dollar and slowing growth in Asia.
On the positive side, the manufacturing sector showed a few improvement in October, advancing 0.4% after two straight monthly declines. Capacity utilization was forecast at 77.5%. Oil and gas-well drilling declined 5 percent after a 4 percent retreat a month earlier. Overall production was held down by a drop in mining and utility output.
Utilities output also showed a substantial decrease, plunging by 2.5 percent in October after jumping by 1.2 percent in the previous month. Last month was the warmest October since 1963, with 14 states experiencing temperatures much above average, according to the National Oceanic and Atmospheric Administration.
Americans’ lingering appetite for new cars, amid easy standards for loans, remains a pillar of support for the industry.
The report said industrial production dipped by 0.2 percent in October, matching the decrease seen in September.
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As such, we expect an increase in manufacturing production in October. Production fell 0.2 percent in September and 0.1 percent in August. Consumer goods production eased 0.1 percent.
