Industrial production drops 0.9%, capacity use at 76.1% in Aug.
Industrial production plunged 0.9% in August, the Federal Reserve reported Friday.
The decrease followed a revised 0.4% gain in July, first reported as a 0.2% rise.
Capacity utilization fell to 76.1% in August July’s revised 76.9%, first reported as 76.7%.
Economists polled by IFR Markets projected a 0.2% increase for industrial production and a 76.8% capacity utilization rate.
Manufacturing output dipped 0.3% in August, following a flat reading in July.
Utilities’ output was down 5.5% after increasing 1.5% in July, while mining was off 0.8% after a 1.3% gain the month before.
“Hurricane Harvey, which hit the Gulf Coast of Texas in late August, is estimated to have reduced the rate of change in total output by roughly 3/4 percentage point,” the Fed said. “The manufacturing industries with the largest estimated storm-related effects were petroleum refining, organic chemicals, and plastics materials and resins.”