US Industrial Production Falls 0.2% in October

Industrial output in the United States contracted 0.2 percent in October from September of 2015, the same as in the previous period and below market expectations of a 0.1 percent rise. Mining production fell 1.5 percent and utilities dropped 2.5 percent while manufacturing increased 0.4 percent.

The decline of 1.5 percent in mining output reflected sizable reductions both in the indexes for crude oil extraction and for oil and gas well drilling and servicing. 

The index for utilities dropped 2.5 percent in October; a decrease for electric utilities was partly offset by an increase for natural gas utilities.

Manufacturing output increased 0.4 percent in October, as the output of durable goods advanced 0.5 percent and the production of nondurable goods rose 0.3 percent. Nearly all major categories of durable goods industries moved up, and gains of 1.0 percent or more were recorded by nonmetallic mineral products; wood products; electrical equipment, appliances, and components; and primary metals. Among nondurable goods industries, the index for textile and product mills gained 1.9 percent and the index for petroleum and coal products rose 1.3 percent, but the index for apparel and leather fell 2.6 percent. The output of other manufacturing (publishing and logging) fell 0.6 percent after having dropped a similar amount in each of the previous two months.

Capacity utilization for the industrial sector declined 0.2 percentage point in October to 77.5 percent, a rate that is 2.6 percentage points below its long-run (1972–2014) average.

Year-on-year, industrial output grew 0.3 percent.

US Industrial Production Falls 0.2% in October

Fed | Joana Taborda |
11/17/2015 2:24:02 PM