US Factory Output Drops For First Time In Seven Months

Industrial output in the US has fallen unexpectedly after six months of gains, but analysts say the shortfall is somewhat misleading.

Factory output in the United States dropped in August for the first time in seven months, pulled down by a sharp fall in auto production, data showed Monday.



The Federal Reserve said manufacturing output shrank 0.4 percent in August after it rose 0.7 percent the month before. Total industrial production was also down 0.1 percent on the month.



The slip marked the first time since January that the overall figure has fallen. Statisticians also noted that while output in mining and utility production had in fact increased, those gains were not enough to offset the drop in manufacturing.



Production of cars and trucks as well as vehicle parts dropped 7.6 percent in August after climbing to more than 9 percent in July.



But compared with a year ago, industrial production was up 4.1 percent in August.



Auto manufacturers also did not view the unexpected slump with overwhelming concern, saying that August figures appeared weaker as many plants forwent their usual July hiatus, which they use to retool for new models.



cjc/sri (AP, AFP)