U.S. Manufacturing Output Falls Again

Jan. 13, 2005
By John S. McClenahen The Paris-based financial institution BNP Paribas has no doubts that the U.S. is in recession. But it wonders, in a November research report, when consumers will lead America out of recession and into economic recovery. Certainly ...
ByJohn S. McClenahen The Paris-based financial institution BNP Paribas has no doubts that the U.S. is in recession. But it wonders, in a November research report, when consumers will lead America out of recession and into economic recovery. Certainly in manufacturing, recovery is not yet happening. Output fell 1.2% in October, the most recent month for which data are available. Declines came in primary metals, autos, lumber, furniture, textiles and paper, reports the Federal Reserve Board, Washington. U.S. manufacturing output is now 7.3% below its level of October 2000. Utilization of U.S. factory capacity continued to fall in October, down one full percentage point from September to 73.1%, its lowest level since 1983. Meanwhile, a 0.3% decline in consumer prices during October leaves room for the Federal Open Market Committee (FOMC), the Federal Reserve unit that sets short-term interest rates, to make additional cuts. "The gradual ebbing of inflation, and inflation expectations, helps to justify the Fed's aggressive ease and could help to justify further rate reductions," says Maury Harris, chief U.S. economist at UBS Warburg, New York. The federal funds rate now stands at 2%, four-and-one-half percentage points below its level at the beginning of the year. The FOMC's next scheduled meeting is Dec. 11.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!