Industrial output slows
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November 16, 1998: 9:53 a.m. ET
Oct. industrial production dips 0.1%, while capacity use drops to 80.2%
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NEW YORK (CNNfn) - U.S. industrial output slowed for a second straight month in October, suggesting manufacturers are beginning to feeling the pinch of economic uncertainty abroad, the Federal Reserve Board reported Monday.
Industrial production, which still was stronger than expectations, fell 0.1 percent in October, compared with a drop of 0.5 percent in September. Before that, output figures for August jumped 1.7 percent, the highest climb since a 2.1-percent rise in January 1984.
Economists had forecast a 0.3 percent dip for the October index.
At the same time, capacity utilization in American industry fell to 80.2 percent, from 81 percent in September. October's figure reflects the lowest factory use rate in six years.
Economists predicted it would come in at around 81.2 percent.
Analysts tracking the market say the Federal Reserve, which monitors output and capacity use as a barometer of economic health, is unlikely to react to the numbers at its interest rate-setting meeting on Tuesday.
The numbers, not a significant departure from economists' predictions, are a relative "non-event," they said.
The bond market, after taking an early morning tumble, regained some momentum after the better-than-expected output report was released.
The benchmark 30-year Treasury was down just 3/32 in price for a yield of 5.26 percent.
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Federal Reserve Board
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