Industrial production decreased 0.6% in November with declines widespread across industries, according to report released by the Federal Reserve on Dec. 15.
Manufacturing production dropped 1.4% in November despite the resumption of activity in the commercial aircraft industry after the resolution of a strike early in the month.
"The November industrial production report confirms a broadening and acceleration of the decline in manufacturing," said Thomas Duesterberg, CEO of the Manufacturers Alliance/MAPI. "Industries related to the already weak auto and construction sectors fell a further 2.6% and 4%, respectively. Production of basic goods like paper, chemicals and primary metals, the lifeblood of a healthy and growing global economy, are down 8.1%, 8.7% and 19.7%, respectively, since November of 2007.
"Business equipment production, which fuels both domestic investment and export markets, is off 7.4% since last November; and durable goods, the primary export category for U. S. manufacturing, is off 9.5% for the last year, a clear sign that the recession has expanded to global markets, he added. "The global industrial economy is in a downward spiral that can only be broken by concerted policy action, including both monetary and fiscal policy."
The capacity utilization rate for total industry fell to 75.4%, a level 5.6 percentage points below its average level from 1972 to 2007.