Washington, DC, October 17, 2006—Industrial output slowed sharply in September, ending the worst quarter in a year, according to a report from the Federal Reserve.
Industrial production from the nation's factories, mines and utilities dropped 0.6% in September, the biggest decline since the previous September, when Hurricane Katrina disrupted the economy.
Manufacturing output fell 0.3% in September, utility output sank 4.4% and mining output rose 0.7%.
The capacity utilization rate for the industrial sector fell to 81.9% from 82.5%, an indication of lessening inflationary pressures from potential bottlenecks.
Economists were expecting industrial production to fall 0.1%. They expected capacity utilization to fall to 82.2%.
