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US industrial production falls by more than 17 months in October





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A Ford Motor Company worker is working on a new truck at a facility in Dearborn, Michigan.

Figures: US industrial output fell 0.8% in October, the largest decline since May 201

8, the Federal Reserve reported on Friday. It was the third production decline in the last four months. The decline was steeper than Wall Street's expectations of 0.5% fall.

The report was influenced by the United Auto Workers strike at General Motors

GM, + 0.14%

which reduced car production by 7.1%.

However, the weakness was not limited to car manufacturing. Excluding cars, industrial production decreased by 0.5%.

Production decreased by 0.6% in October. Manufacturing of vehicles in October decreased by 0.1%.

Industrial capacity in use fell to 76.7 in October. It is the lowest level in 25 months.

What Happened: No sector showed a profit increase.

Mining production, which has been a driving force for growth, fell 0.7% in October. This is the third downturn in the last four months. Utility production fell by 2.6% after a sharp increase last month.

On an annual basis, US industrial production fell by 1.1%.

Big picture: The manufacturing sector is hit hard by several headwinds, including weak global demand, uncertainty about international trade policy and misery at Boeing Co. Some economists discovered a trough in the manufacturing sector, but this report believes that impression.

Fed Chairman Jerome Powell told lawmakers this week that his economists are watching closely if the manufacturing sector weaknesses switch to the consumer side of the economy. But retail data in October, released earlier Friday, were generally positive.

Market reaction: Shares

DJIA, + 0.32%

was set to open higher on Friday as investors merge the retail data.


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