U.S. industrial production declined more than expected in October, with the auto workers strike exerting downward pressure on a range of market groups, the Federal Reserve said Thursday.
The United Auto Workers union called off a six-week strike late last month after reaching agreement with the "Big Three" automakers over better pay and working conditions.
U.S. industrial production fell 0.6% in October from a revised 0.1% rise in September, the U.S. central bank announced in a statement.
This was below the median expectation of economists surveyed by MarketWatch.
Manufacturing output, which declined by 0.7%, was dragged down by "a 10 percent drop in the output of motor vehicles and parts that was affected by strikes at several major manufacturers of motor vehicles," the Fed said.
Among the major market groups, output was mixed, with the impact of strike action "exerting downward pressure on a number of categories," including the index for consumer durables, which fell 5.8%.
Meanwhile, the output of business equipment moved down 0.5%, "because of a drop in the transit component," while the index for defense and space equipment recorded its 10th consecutive monthly rise, the Fed said.
Copyright 2023, Agence France-Presse
