Industrial Output Fell 14 Months in a Row

The nation's overall industrial output declined by 0.9% during October 2001 and by another 0.3% in November, its 14th consecutive month of decline. December output data will likely make it 15 straight months of contraction.

Compared to November 2000, last November's level of production in the U.S. manufacturing sector was 6.3% lower than a year earlier. Production from the nation's mining sector eked out a gain during the month, but output from utilities was 2.0% lower in November than it had been during October, reflecting both relatively mild weather in the northern tier of states and reduced demand for electricity from manufacturing plants and office buildings. Business equipment production fell 0.6% between October and November, and was 13.5% lower last November than during November 2000.

The overall industrial production measure—which combines the manufacturing, mining, and utilities sectors of the economy—fell by 0.3% during November, after much steeper declines of 0.8% and 0.9% during September and October, respectively. However, the production index for consumer goods grew for the first time in the past four months during November, tentative evidence that this recession will be neither too deep nor too long.