bank run blog

The Federal Reserve reported today that industrial production shrank by 2.8 percent in September, the biggest decline in manufacturing, mining and utility production recorded since December 1974 when industrial output fell 3.5 percent. The drop in production came after a one percent drop in August. Yahoo News said that the Federal reserve posited that;

“disruptions related to the hurricanes accounted for about 2.25 percentage points of the total drop in industrial production in September. In addition, a strike affecting the commercial aircraft industry also was a factor in the poor showing, accounting for around a half percentage point of the overall decline.”

Notwithstanding the Fed’s analysis, Yahoo ponders;

“Still, even before the hurricanes hit, manufacturing has been feeling the pain of the housing collapse, credit problems and weaker demand from the slowing U.S. economy. Demand for housing related goods and construction materials has been particularly hard hit as the housing slump has dragged on.”

See article-
Yahoo News - Industrial production falls by most since late `74