MW: Industrial production bounces back from storms
Excluding energy, output falls 0.1% in October, Fed says
WASHINGTON (MarketWatch) - Output of the nation's factories, mines and utilities rebounded part of the way in October from September's sharp weather-related slump, the Federal Reserve reported Monday.
Industrial production increased 1.3% in October after falling a revised 3.7% in September, which was the biggest decline in 60 years. Massive hurricanes in the Gulf shut down oil drilling, oil refining and chemical production in September, the Fed said. The strike at Boeing Co. also reduced output in September.
Excluding those two special factors, output fell about 0.7% in both September and October, the Fed said.
Excluding energy, industrial output fell 0.1% in October.
Despite October's gains, the manufacturing sector is mired in a recession. Industrial production was down 4.1% compared with a year earlier. Industrial production is one of four monthly economic indicators used to judge whether the economy is in a recession; no formal recession call has been made by the business cycle dating committee yet.
The rebound in output was stronger than the 0.5% gain expected by economists surveyed by MarketWatch.
Capacity utilization rose to 76.4% in October from 75.5% in September. In manufacturing alone, capacity utilization increased to 73.8% from 73.5%, far below typical usage rates.
Manufacturing output increased 0.6% in October after falling 3.7% in September. Output of mines increased 6.1%. Output of utilities increased 0.4%.
Output of motor vehicles and parts fell 3.5% in October and were down 18.4% in the past year. Vehicle assembles fell to an annual rate of 8.09 million from 8.41 million in September and 10.75 million in all of 2007. It was the fewest vehicle assemblies in 17 years.
Excluding motor vehicles, manufacturing output increased 0.8% in October.
The output of high-technology industries fell 0.9% in October, the third decline in a row. High-tech output was up 9.9% compared with October 2007.
Excluding high-tech, manufacturing output increased 0.7% in October.
