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US industrial production declined in October as the impacts from a Boeing Co. machinists’ strike and a pair of hurricanes reverberated through manufacturing for a second month.
Author of the article:
Bloomberg News
Vince Golle
Published Nov 15, 2024 • 1 minute read
(Bloomberg) — US industrial production declined in October as the impacts from a Boeing Co. machinists’ strike and a pair of hurricanes reverberated through manufacturing for a second month.
The 0.3% decline in output at factories, mines and utilities followed a revised 0.5% decrease a month earlier, Federal Reserve data showed Friday.
Manufacturing output, which accounts for about three-fourths of total industrial production, slid another 0.5%, after a revised 0.3% drop the previous month. Mining and energy extraction rose 0.3%, while output at utilities climbed 0.7%, the most in four months.
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Article content
A 53-day walkout by Boeing workers crippled aircraft production before union members agreed to a new labor contract earlier this month. The company delivered just 14 jetliners in October, the fewest in nearly four years.
The result, according to the Fed’s latest industrial production report, was a 5.8% plunge in the output of aerospace equipment last month on top of an 8% decline a month earlier. After suppressing industrial output in September, Hurricanes Milton and Helene continued to weigh on activity last month.
Together, these storms reduced October industrial production by 0.1 percentage point. The Fed also said the strike reduced industrial production by a combined 0.5 percentage point in both September and October.
The aircraft sector’s downturn exaggerates the more general malaise in US manufacturing as elevated borrowing costs, a pause in some capital spending plans and tepid growth in overseas economies make it difficult for production to gain much traction.
While easier Fed monetary policy may help free up capital outlays, businesses still face an uncertain industrial policy path as President-elect Donald Trump threatens tariffs to help reshore more domestic production.
—With assistance from Mark Niquette.
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English (US)