Economic Watch: Industrial Production Falls Slightly

Industrial production in the U.S. fell slightly in August, its first decline since January, according to a report released Monday by the Federal Reserve.

This measure of the total output at the nation’s factories, mines and utilities decreased 0.1% from July, while it was revised downward from an earlier reported 0.4% gain in July’s to a 0.2% increase.

The declines in total industrial production and in manufacturing output in August reflected a decrease of 7.6% in the production of motor vehicles and parts, which had jumped more than 9% in July, according to the Fed. Excluding motor vehicles and parts, factory output rose 0.1% in both July and August. Overall manufacturing output fell 0.4% in August.

The production at mines moved up 0.5% in August, and the output of utilities rose 1%.

At 104.1% of its 2007 average, total industrial production in August was 4.1% above its year-earlier level. Capacity utilization for total industry decreased 0.3 of a percentage point in August to 78.8%, 1 percentage point above its level of a year earlier and 1.3 percentage point below its 1972–2013 average.

Meantime a separate report on Monday from the Federal Reserve Bank of New York showed manufacturing in the New York state area increased this month to its highest level in nearly five years.

Both reports follow one on consumer sentiment, released Friday, showing it was at its highest level in more than a year and beating many analysts expectations.