September Industrial Production Drops Sharply

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.S. industrial production plunged 1.3% in September, the Federal Reserve said Friday.

The drop followed a revised 0.2% increase in August that was originally reported as a 0.1% gain.

Economists had forecast a 0.4% decline, Bloomberg reported.

Manufacturing, which accounts for about 90% of industrial production, fell 0.5% following a 0.3% gain in August. The factory sector is one of trucking’s largest and most important customers.

Automotive production rose 3.3%, while mining, which includes oil and gas production, plunged 9.1% in part due to Hurricanes Rita and Katrina.

Utility output dropped 0.9% following a 0.5% drop in August.