US industrial production flat in October, misses estimates

US industrial production was unchanged in October following a 0.2% drop in September, according to the latest data from the Federal Reserve.

Economists had been expecting production to edge up 0.2%.

Meanwhile, the figure for September was revised down from a previously-reported 0.1% increase.

Manufacturing output increased 0.2%, while mining posted a 2.1% gain, which marked its biggest jump since March 2014.

However, the index for utilities dropped 2.6% as warmer-than-normal temperatures reduced the demand for heating.

Capacity utilisation, which measures industrial slack, edged down 0.1 percentage point in October to 75.3%.

Capital Economics said: “The stagnation of industrial production in October, which was weaker than the consensus forecast but in line with our own estimate, was entirely due to a weather-related slump in utilities output. Mining output experienced its biggest rise in more than two years, while the manufacturing sector also appears to be gradually recovering.

“The 2.6% m-on-month drop in utilities output was even worse than we had expected based on the weekly electricity generation figures. With last month being the third warmest October on record, demand for heating was significantly lower than normal for the time of year.”