Industrial production plunges

Filed under: Daily News |

Industrial production during October dropped to its lowest level in nine months, reflecting continued troubles in the auto and home–building industries.

The Federal Reserve said that output at the nation’s factories, mines and utilities fell by 0.5 percent last month, far below earlier expectations.

An overall warmer-than-normal October also contributed to the decline as electricity and natural gas output dipped.

Rising gasoline prices caused decreased demand for auto makers while housing is enduring its worst slump in more than two decades.

In an effort to boost the economy, the Federal Reserve has cut interest rates twice since September.