U.S. industrial production slowed last month, with factory output declining, the government reported Tuesday, indicating that consumers and businesses remain cautious and that the recovery from a severe recession was losing some momentum as government stimulus faded. Even though overall production at U.S. factories, mines, and utilities rose for the fourth consecutive month in October, growth has slowed considerably. Industrial production rose 0.1 percent last month after a 0.6 percent advance in September, the Federal Reserve (Fed) reported. Factory output-the biggest portion of industrial production-fell 0.1 percent in October after a 0.8 percent rise the previous month. It was the first decline since June. Production at mines fell 0.2 percent last month, following a 0.6 percent gain in September. Production at electric and natural-gas utilities jumped 1.6 percent in October following a 0.2 percent drop the previous month. Production cutbacks last month affected not only autos, but also appliances, furniture and carpeting, clothing, computer and electronic products, paper products, petroleum and coal products, fabricated metal products, and other items, the report said. Much industrial capacity was unused last month. Capacity utilization rose 0.2 percentage points to 70.7 percent in October, a rate 10.2 points below its 1972-2008 average.
