Industrial production unexpectedly falls
Data from the Federal Reserve showed that industrial production dropped 0.2% in October, while capacity utilization was 77.5%.
However, manufacturing output increased, by 0.4%, amid some signs that the sector's recession may be near its end. Nearly all categories of durable-goods production increased, including wood products, appliances, and primary metals.
But utilities production dropped 2.5%, as natural gas utilities production tumbled.
"Overall, the decline in headline industrial production wasn't quite as bad as it looked since it was partly weather-related," wrote Capital Economics' Steve Murphy to clients. "But equally, the rebound in manufacturing output is unlikely to be sustained in the face of the continued dollar appreciation. The bottom line is that the industrial sector will struggle for some time yet."
The consensus forecast called for industrial production to rise 0.1%, compared to a 0.2% drop in the prior month, according to Bloomberg. Capacity utilization was forecast at 77.5%. September's print was revised to 77.7% from 77.5%.