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Industrial output dips
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August 14, 1998: 10:38 a.m. ET
Production at nation's factories falls 0.6%; recovery from GM strike in sight
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NEW YORK (CNNfn) - U.S. industrial production posted a decline in July basically in line with economist forecasts, the Federal Reserve Board reported Friday.
Industrial output fell 0.6 percent in July, compared with economists' forecast of a 0.5 percent decline. That figure was significantly higher than June's revised 1.1 percent drop.
The Federal Reserve Board originally reported a June decline of 0.6 percent but revised that number downward after factoring in more complete information on production losses resulting from strikes at key General Motors Corp. (GM) parts plants.
Capacity utilization in American industry continued to slide, falling to 80.5 percent from June's revised 81.2 percent. July's figure ranks as the lowest level since May 1993.
Bond traders appeared to regard the news as a sign that the effects of the GM strike are fading. The 30-year Treasury bond was up 3/32 of a point, bringing the yield down to 5.59.
Excluding motor vehicles and parts, July output edged up 0.1 percent following a 0.4 percent June fall.
"Now that the GM strike is over, we should see a big rebound in industrial production numbers," Jim Bianco, research director at Bianco Research, told CNNfn.
Overall industrial production is an aggregate estimate of goods and services made by U.S. factories, mines and utilities. The figures do not include goods produced in agriculture, fishing and forestry.
The automotive sector slipped 11.1 percent from June's seasonally adjusted 10.7 percent drop. Durable goods fell 1.2 percent, up from June's 1.5 percent drop. Non-durables fell 0.2 percent, compared with a 0.7 percent slide in June.
Major market products fell 0.7 percent after falling 0.9 percent in June. Consumer goods dropped 0.9 percent, compared with a 1.5 percent fall in June.
Mining industry output gained 0.4 percent after a 1.9 percent loss in June, while utilities were unchanged after a 0.6 percent loss in the previous month.
Measurements of U.S. industrial output have been kept since the 1920s. Economists use the numbers to gauge behavior in the business cycle. 
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