Washington, DC, October 14, 2005--Industrial production dropped by 1.3% in September as Hurricanes Katrina and Rita knocked out oil rigs and refineries along the Gulf Coast, according to a report from the Federal Reserve. It was the biggest drop in 23 years.
The drop in output at factories, mines and utilities followed a revised 0.2% gain in August.
The decline was led by a 9.1% drop in mining, which includes oil and gas. The proportion of industrial capacity in use fell to 78.6% from 79.8% a month earlier.
Economists were expecting the index to fall 0.4%.
Manufacturing, which accounts for about nine-tenths of the industrial-output index, fell 0.5% after a 0.3% gain the previous month. A strike at Boeing Co. also cut overall production in September, the Fed said.
Mining, which includes oil and gas production, plunged 9.1%. Utility output declined 0.9%, following August's 0.5% drop.
Automotive production rose 3.3% in September, compared with a 5.5% rise in August, while output at makers of parts for cars and trucks increased 1.5 percent after gaining 1.4% the previous month.
Production of consumer goods excluding autos rose 0.2% in September after remaining unchanged in August. Production of business equipment, such as computers and telecommunications gear, fell 5.4% in September after a 0.6% drop a month earlier.
