Industrial production in the United States unexpectedly dropped in October as slowing sales prompted manufacturers to make fewer automobiles and appliances.
Factories, mines, and utilities reported a 0.5% decline in output, the biggest since January, after a 0.2% gain in September, the Federal Reserve said. Capacity utilization, which measures the share of maximum potential used, fell to 81.7% from 82.2%.
Factories, which account for about four-fifths of industrial production, made 0.4% fewer goods last month. Production of consumer durable goods, including automobiles, furniture, and electronics, dropped 0.8% after falling 1.6% the prior month.
Retail sales increased 0.2% in October following a 0.7% increase the prior month