U.S. industrial output fell less than expected in November as factories continued to suffer from weakness in autos and other sectors. Industrial activity fell 0.6 percent last month, the Federal Reserve (Fed) reported Monday. Economists had expected a drop of 0.8 percent. November's decline followed a 1.5 percent increase in October. However, that gain happened after a 4.1 percent plunge in September. In November, manufacturing output fell 1.4 percent, reflecting a 2.8 percent drop in production at auto factories, the third such decline in the past four months, the Fed said. Production fell by 11 percent in August and 3.6 percent in October. Output at aerospace factories rose by 12.8 percent after three consecutive months of declines. A strike stopped production at Boeing's commercial airplane factories for eight weeks before union members agreed to a deal in early November. The strike reduced Boeing revenues by more than $100 million per day and forced subcontractors around the world to lay off workers. Output at U.S. mines increased by 2.5 percent in November following a 7.2 percent rise in October, the central bank said. That gain came after a 9.5 percent plunge in September as oil and natural-gas production along the gulf coast was disrupted by hurricanes. Production at U.S. utilities rose 1.6 percent in November after a 0.7 percent increase the previous month, the Fed said. Capacity utilization fell to 75.4 percent in November from 76 percent the previous month. Manufacturing capacity usage decreased to 72.3 percent, the lowest level since April 2002, the central bank said.
