US industrial output rose at a slower pace in August and a measure of New York state business conditions slipped to the lowest level in more than a year, according to data today that suggested the economy was cooling but not stalling.
Industrial production rose 0.2% in August, matching economists' forecasts for a sharp slowdown from July when unusually strong car manufacturing lifted output, Federal Reserve data showed.
July's gain was revised down to 0.6% from 1%. Excluding motor vehicles and parts, total industry output increased 0.4% in August, compared with July's 0.3% advance.
Separately, the New York Federal Reserve's 'Empire State' general business conditions index slipped to 4.14 in September from 7.10 in August. September's reading marked the lowest since July 2009 and was below market expectations for a reading of 8.
Economists often look to the Empire State report as an early gauge of national output patterns because it is one of the first data points released each month.
Beneath the disappointing headline, however, some economists saw cause for optimism in higher readings on new orders and the average workweek.
Another report from the Labor Department today showed import prices increased 0.6% after rising by a revised 0.1% in July. Analysts had forecast import prices rising 0.3% last month from a previously reported 0.2% gain in July.
They are still encouraged that the New York state manufacturing index had not dropped below zero, which would have signaled a contraction in factory activity. The survey showed employment continued to improve.
Although import prices rose sharply in August, the annual increase of 4.1% was the smallest advance since November. August's monthly rise reflected a 2.1% rise in the price of imported petroleum and petroleum products, the largest since April, after a 0.9% increase in July.
Excluding petroleum, import prices rose 0.2%, reversing the prior month's 0.2% decline. Prices of imported foods jumped 2.2% from a 0.15 rise in July. There were also increases in prices for industrial supplies and materials.
