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Friday, October 16, 2020

U.S. industrial output declines unexpectedly in September

Industrial production fell for the first time in five months in September, surprising economists who had expected more steady growth from the factory sector.

Industrial output fell 0.6% in September, the first decline after four straight months of gains, the Federal Reserve reported Friday.

The decline was well below Wall Street expectations of a 0.4% gain, according to a survey by MarketWatch.

Output remains 7.1% below its pre-pandemic level.

The declines were widespread in September. Manufacturing alone fell 0.3% after a 1.3% rise in August. Output of motor vehicles and parts fell 4% in the month.

Utilities output fell a sharp 5.6% in September after a 1% decline in the prior month.

Mining production rose 1.7% after a 2.4% fall in August.

Capacity utilization fell to 71.5% in July, the highest/lowest rate since June. The capacity utilization rate reflects the limits to operating the nation’s factories, mines and utilities

 

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