Industrial production declined 1.1% in August, much worse than a forecast drop of 0.3%, as utility production fell a steep 3.2% and auto production plunged 11.9%. Capacity utilization fell from 79.7% in July to 78.7% in August, the lowest in almost four years.
The Empire Manufacturing Index, which measures manufacturing in New York state, fell from 2.8 in August to -7.4 in September. A reading below zero indicates that manufacturing is contracting; however, the pace of activity is shrinking modestly. Price pressures receded some but remain elevated.
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