TheNews

With manufacturing output falling for the first time since January, the Federal Reserve released a report on Monday showing that U.S. industrial production unexpectedly decreased in the month of August.

The report said industrial production edged down by 0.1 percent in August after inching up by a downwardly revised 0.2 percent in July.

The modest drop came as a surprise to economists, who had expected production to climb by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

The unexpected drop in industrial production came as manufacturing output fell by 0.4 percent in August after rising by 0.7 percent in July.

The Fed noted that the production of motor vehicles and parts tumbled by 7.6 percent in August after jumping by more than 9 percent in July.

Meanwhile, the report also said mining output rose by 0.5 percent in August after dipping by 0.3 percent in the previous month.

Utilities output also surged up by 1.0 percent in August after plunging by 2.7 percent and 2.0 percent in July and June, respectively.




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