Output, Capacity Rate Skid in October: Production...

Output, Capacity Rate Skid in October: Production at factories, mines and utilities plunged in October and operating rates fell, the Federal Reserve Board said in a report that analysts predicted will pressure the central bank to cut interest rates soon. The 0.8% drop in industrial production last month was the biggest since a 1% decline in January and left plants running at just 82.6% of capacity, compared to 83.5% in September. Production rose 0.2% in September. “It’s just across-the-board weakness,” said John Williams, a managing director at Bankers Trust Co. in New York. “You’ve got a fundamentally weak industrial sector, the sort of weakness the Fed has to respond to.”

Industrial Production Seasonally adjusted Index, 1987=100 Oct., ‘90: 109.6 Sept.,’90: 110.5 Oct., ‘89: 107.7 Source: Federal Reserve Board