Industrial production fell by a much bigger than expected 0.5% M/M in October, to be up 1.8% Y/Y, following a 0.2% M/M increase in September. Utility output plunged 1.6% M/M, but this was due to warmer weather and thus not so important. However, the cyclical manufacturing sector fell a steep 0.4% M/M, suggesting that the pulse in the manufacturing sector is slowing rapidly. This should raise concerns at the Fed. The capacity utilization dropped to 81.7 from 82.2.