November industrial production dips 0.6 percent

15/12/2008 - 14:20

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WASHINGTON (Reuters) - Industrial production slipped by a slightly less-than-expected 0.6 percent in November and was a bit stronger the month before than previously thought, Federal Reserve data on Monday showed.

Economists polled by Reuters had expected a 0.7 percent decline in November after a revised rise of 1.5 percent in October. This was previously reported as a 1.3 percent increase.

November's manufacturing output fell 1.4 percent versus a 0.6 percent gain in October, while November's mining output was up 2.5 percent. Utility output was 1.6 percent higher.

Compared with November 2007, industrial output was down 5.5 percent, the Fed said.

Capacity utilization shrank to 75.4 percent in November from 76.0 percent the month before, previously reported as 76.4 percent. It had been forecast by economists to edge down to 75.7 percent in November. Manufacturing capacity usage decreased to 72.3 percent, the lowest level since April 2002.

Manufacturing slack has grown since the economy entered a recession last year after the collapse of the country's housing market. This sparked a global credit crisis that has hammered consumer and business confidence and withered spending.

(Reporting by Alister Bull; Editing by Chizu Nomiyama)

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