Photo: WOSUColumbus via YouTube
The October industrial production report just came out and it was a disappointment.Click here for LIVE updates >
Activity unexpectedly fell 0.4 per cent. Economists were expecting a 0.2 per cent month-over-month gain.
” Hurricane Sandy, which held down production in the Northeast region at the end of October, is estimated to have reduced the rate of change in total output by nearly 1 percentage point,” wrote the Federal Reserve Board.
Economists likely factored in the effect of the Hurricane, so this report is a disappointment.
Also, the September growth rate was revised down to 0.2 per cent from a previous reading of 0.4 per cent.
More from the report:
Industrial production declined 0.4 per cent in October after having increased 0.2 per cent in September. Hurricane Sandy, which held down production in the Northeast region at the end of October, is estimated to have reduced the rate of change in total output by nearly 1 percentage point. The largest estimated storm-related effects included reductions in the output of utilities, of chemicals, of food, of transportation equipment, and of computers and electronic products. In October, the index for manufacturing decreased 0.9 per cent; excluding storm-related effects, factory output was roughly unchanged from September. The output of utilities edged down 0.1 per cent in October, and production at mines advanced 1.5 per cent. At 96.6 per cent of its 2007 average, total industrial production in October was 1.7 per cent above its year-earlier level. Capacity utilization for total industry decreased 0.4 percentage point to 77.8 per cent, a rate 2.5 percentage points below its long-run (1972–2011) average.
Photo: Federal Reserve Board
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