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Industrial output dips
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October 15, 1999: 11:39 a.m. ET
Hurricane Floyd knocks wind out of motor vehicle, electricity production
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NEW YORK (CNNfn) - Hurricane Floyd, the big wind that raged up the East Coast last month, blew industrial production into negative territory in September, the Federal Reserve said Friday.
Production at U.S. factories, mines and utilities, which had risen 1 percent over July and August, declined 0.3 percent in September, essentially wiping out last month's 0.3 percent increase.
Economist polled by Reuters expected production to rise 0.2 percent in September.
The rate of capacity utilization for industry declined 0.4 percentage point to 80.3 percent in September. Analysts had expected the figure to remain at 80.7 percent.
Hurricane Floyd held down production of electricity, motor vehicles and some other goods. If Floyd had not happened, the Fed said industrial production would have posted a small increase.
In the manufacturing sector, output edged down 0.2 percent.
Durable goods output dipped 0.5 percent, spurred by a 2 percent drop in the production of transportation equipment and easing among durables industries -- with machinery and equipment industries the exceptions.
Electric utility operating rates fell for a second month, but remained relatively high at 93.9 percent.
A decline in truck production sent capacity utilization for autos and light trucks down 5 percentage points to 89.5 percent. Aerospace and miscellaneous transportation equipment production dropped 1.8 percentage points to 73.2 percent, more than 9 percentage points below the rate in September 1998.
In mining, the operating rate remained at 82.1 percent. Oil and gas well drilling and metal mining increased, offsetting declines in the overall extraction of crude oil and coal.
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