U.S. Industrial Production Falls

Washington, Rabi’I 15, 1438, December 14, 2016, SPA—U.S. industrial production fell sharply in November, mainly because utilities reduced output due to unusually warm weather, the government reported Wednesday.
The Federal Reserve (Fed) said output at U.S. factories, mines, and utilities fell 0.4 percent last month, in another sign that U.S. industry is struggling even as the overall U.S. economy looks healthy.
Factory output—the biggest component of industrial production—fell 0.1 percent in November. A decline in auto production, which is volatile month to month, offset increased output elsewhere.
Utility output plunged 4.4 percent, following a 2.8 percent drop in October. A warm autumn meant people used less heat. Mining production rose 1.1 percent in November despite a steep drop in output at coal mines.
Industrial production has fallen in three of the last four months and has declined 0.6 percent in the past year. Manufacturing has been hurt by a strong dollar, which makes U.S. goods more expensive in overseas markets. Factory production has risen only 0.1 percent over the past year.
Energy firms have cut production amid low oil prices, pushing mining output down 4.6 percent over the last year, despite November’s gain. Mines—including oil and natural-gas operations—have cut 87,000 jobs in the past 12 months, while factories have lost 54,000.
–SPA
21:02 LOCAL TIME 18:02 GMT