US industrial production fell for the first time in five months and experienced its largest decline since January of this year, surprising analysts who were expecting a modest increase.
The Federal Reserve reported that US industrial production fell 0.5 per cent in October due to across-the-board declines in production of autos, home electronics, appliances, furniture and other goods.
The report also put October's plant capacity utilization rate at 81.7 per cent, down from 82.2 the prior month.
Analysts were expecting a 0.1 per cent rise in production and an operating rate of about 82 per cent.
September production was revised upwardly to a 0.2 per cent rise from 0.1 per cent, and September's capacity use was adjusted up by a tenth of a percentage point to 82.2 per cent.
Utility output fell the hardest of all major industry groups, down 1.6 per cent after falling just 0.1 per cent in September and rising 5.2 per cent in August. A whopping 7.7 per cent drop in natural gas production brought the utilities number down.
Manufacturing fell 0.4 per cent led by a 0.8 per cent decline in machinery, 1.2 per cent decline in electrical equipment and appliances, and 1 per cent decline in autos and auto parts.