Industrial production fell 0.3 percent in October due to the recent strike at Boeing and the lingering impacts of Hurricanes Milton and Helene, according to the Federal Reserve.
The strike at Boeing ended Nov. 4 when West Coast factory workers agreed to a new contract offer, ending the seven-week strike that paused most jet production and worsened an existing financial crisis at the company.
The drop in industrial production followed a 0.5 percent fall in September. At 102.3 percent of its 2017 average, total industrial production was 0.3 percent under its year-earlier mark in October. Capacity utilization fell to 77.1 percent, which was 2.6 percentage points under its average from 1972-23.
Manufacturing output fell a half-percent in October and was 0.3 percent under its year-ago mark. The index for mining increased 0.3 percent, while the index for utilities increased 0.7 percent.
The output of consumer goods was essentially unchanged. The production of durables fell 1.4 percent, while the index for nondurable goods increased 0.4 percent. The indexes for nondurable energy and nondurable non-energy goods both grew.
The index of construction supplies slightly increased in October, while the index of business supplies edged down. Drops in the durable non-energy and nondurable non-energy indexes were offset by a 0.8 percent rise in the output of energy materials.
“The output of business equipment fell 2.7 percent in October following a 3.5 percent decline in September,” according to the Federal Reserve. “As in September, the October decline was led by a sharp drop in the production of transit equipment, largely due to the work stoppage in civilian aircraft.”
The index of durable goods fell 1.2 percent amid a 5.8 percent drop in the output of aerospace and miscellaneous transportation equipment and declines of at least 1 percent in primary metals, for motor vehicles and parts, and for furniture and associated products.
The production of nondurable goods increased as gains in the indexes of chemicals, paper, and petroleum and coal products offset decreases in the indexes of apparel and leather, textile mills, printing and support and plastics and rubber products.
Mining output increased 0.3 percent last month, as a drop in coal mining was more than offset by a rise in oil and gas extraction following hurricane-induced drops in September. The output of utilities increased 0.7 percent last month, as a rise in electric utilities was partially offset by a drop in natural gas utilities.
Manufacturing capacity utilization fell 0.5 percentage point in October to 76.2 percent, 2.1 percentage points under its long-term average. The operating rate for mining increased 0.3 percentage points to 88.7 percent, 2.2 percentage points higher than its long-term average. The operating rate for utilities increased 0.3 percentage point to 71.4 percent, still well under its long-term average.
