Industrial Output Down 0.1% in August

Washington, DC September 15, 2006–Industrial output fell 0.1% in August, according to the Federal Reserve Board, indicating a slowdown, which in turn is expected to discourage the Fed from raising interest rates next week.

The slight drop in industrial output last month follows an unrevised 0.4% gain in July; the slip is thought to have been led by a 0.8% drop in production at utilities.

Overall, capacity utilization dropped to 82.4% in August from 82.7% in July. Over the entire year, capacity grew 1.9%. Capacity utilization is slightly above historical levels, having average 81% over the past 20 years.