Washington: US industrial production unexpectedly fell in August after six months of gains, dragged down by a slump in automobile manufacturing, the Federal Reserve reported Monday.
Overall industrial production declined 0.1 percent on the month, surprising analysts who on average had forecast a 0.3 percent increase.
Compared with a year ago, the industrial production was up 4.1 percent in August
Manufacturing output fell 0.4 percent in August. It was the first time since January that total output and manufacturing output fell.
"The shortfall is somewhat misleading because it owes to a temporary reversal in motor vehicle and parts production where the trend is very strong, though the trend in manufacturing does appear a bit weaker outside of autos," said Aaron Smith of Moody`s Analytics.
Production of cars and trucks and parts dropped 7.6 percent after surging more than nine percent in July. Stripping out automobile production, manufacturing rose 0.1 percent in both July and August.
Mining production rebounded, increasing 0.5 percent from a 0.3 percent drop.
Utilities output rose for the first time in three months, by 1.0 percent.
Capacity use dipped to 78.8 percent from 79.1 percent in July.
The Fed downwardly revised July`s output growth by half, to 0.2 percent.
