US industry unexpectedly put the brakes on in September, marking the first drop in production since the recession ended, official data showed today. Industrial output fell 0.2% in September, wiping out a 0.2% gain in August, according to the Federal Reserve's monthly report.
The decline surprised most analysts, whose consensus forecast was for another rise of 0.2%. It was the first time that industrial production had fallen since a 0.2% decline in June 2009, the month the most severe recession in generations ended.
Manufacturing, the sector leading the recovery, slid into reverse in September. The sub-indexes both for manufacturing and for manufacturing, excluding motor vehicles and parts, fell 0.2%.
The output of consumer goods declined 0.4%, with production of consumer durable goods, items expected to last several years, down 0.9%, while home electronics rose 0.6%. Mining production was a bright spot, moving up 0.7% in September. The output of gas and electric utilities fell 1.9%.
On a quarterly basis, the output of the nation's manufacturers, mines and utilities slowed sharply in the July-September period, rising only 4.8% after gains of 7% in the three previous quarters.
The Fed noted that consumer goods output had increased faster in the third quarter than in the second quarter. The pickup 'reflected unusually strong summer sales by utilities and a jump in the output of consumer automotive products,' the Fed said.
