Industrial production declined in October.
The latest report from the Federal Reserve showed industrial production fell 0.1% month-on-month in October while capacity utilization fell to 18.9% from 79.3%.
Expectations were for the report to show industrial production rose 0.2% month-on-month in October, with capacity utilization expected to remain at 79.3%.
Last month’s report showed industrial production rose 1% month-on-month in September, which was stronger than the 0.4% expected by economists.
Monday’s report showed September’s growth number was also revised down to 0.8% from 1%, while capacity utilization for September also fell to 79.2% from 79.3%.
The big declines in the October report were from the mining and utilities sectors, which saw production fall 0.9% and 0.7%, respectively, while manufacturing production was up 0.2%.
In a note to clients following the report, Ian Shepherdson at Pantheon Macro said mining output, “was depressed by a 1.2% drop in crude oil extraction, where the trend is still rising but the rate of growth is slowing as falling prices have greatly reduced the profitability of US shale operations.”