US industrial production declines 0.6% in October due to strikes

By Ovunc Kutlu

ISTANBUL (AA) – US industrial production contracted 0.6% in October, compared to the previous month, according to the Federal Reserve data released Thursday.

While the market expectation for the figure was to show a 0.3% decline, the September figure was revised down to a gain of 0.1% from a 0.3% increase.

Annually, industrial production was down 0.7% in October, compared to the same month last year, according to the Fed figures.

"Much of this decline was due to a 10% drop in the output of motor vehicles and parts that was affected by strikes at several major manufacturers of motor vehicles – the index for manufacturing excluding motor vehicles and parts edged up 0.1%," the Fed said in a statement.

Manufacturing output, meanwhile, declined 0.7% in October from the previous month.

The market estimate for the figure was to show a 0.3% monthly decrease, while the September figure was also revised down to an increase of 0.2% from a 0.4% gain.

Capacity utilization, which indicates overall growth and demand in the economy, moved down 0.6 percentage point to 78.9% in October

That figure was slightly lower than market estimates of 79.4%, while the September figure was also revised down to 79.5% from 79.7%.