Signs of trouble in the manufacturing sector's recovery
|The manufacturing sector is another area of the economy losing momentum recently, with production down 0.3% in September. Areas that have driven the factory sector's recovery gave back ground last month.
First Drop in Manufacturing Production Since April
Industrial production unexpectedly fell in September, contracting 0.6%. Utilities were a major drag (-5.6%) after a particularly hot August, while mining output (up 1.7%) only partially reversed last month's storm-related drop.
More telling about the state of the economy was the 0.3% drop in manufacturing production, which leaves output 6.1% off its February level.
Areas of Strength Turn to Drags
A number of areas that have been key to the manufacturing sector's rebound thus far saw output decline in September. This suggests that pent-up demand from spring shutdowns or the initial surge in interest for goods to spruce up or work from home is fading. Auto products declined for a second straight month, while computers & electronics and appliances, furniture & carpeting production also declined.
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