Factory Output Drops 0.5% in October

The output of the nation’s factories fell last month for the first time in seven months as auto worker strikes slowed production while some businesses were trimming inventories. The Federal Reserve Board said the ripple effect of the strike at General Motors’ Canadian plants and later disputes that closed some of GM’s U.S. assembly lines were largely responsible for the overall 0.5% decline. But the report also showed that, excluding auto plants, output at the nation’s factories, mines and utilities was down 0.2%, with most industries sharing in the loss. A separate Commerce Department report showed growth in business inventories slowed to just 0.1% in September, from 0.3% in August.