Industrial Production Dips in October

Industrial production dipped 0.1% in October after a 0.7% increase the month before, the Federal Reserve reported Nov.15.

The figure beat the average forecast from economists surveyed by Bloomberg News that production would rise 0.2%.

Factory production, which accounts for about 75% of industrial output, rose 0.3% after a 0.1% gain in August, the Fed reported.

Capacity utilization, which measures industrial plant output, fell to 78.1% from 78.3%.

Motor vehicle and parts manufacturing dipped 1.3%, the first decline in three months, the Fed said.

Manufacturing accounts for about 12% of the U.S. economy. The factory sector is one of trucking’s largest and most important customers.

“Manufacturing will keep expanding. Demand should be pretty solid. The overall economy has been held back by the fiscal drag, but as that fades, we should see an improvement,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics, told Bloomberg News.

In a separate report, the Federal Reserve Bank of New York said manufacturing activity in that region declined in November.

The “Empire State Index,” generally the first economic indicator in a given month, declined to a -2.21 reading from 1.5 in October, the regional Fed said. Economists had forecast a reading of 5, Bloomberg reported.

Orders declined to a -5.53 reading, after 7.75 the previous month.