U.S. manufacturing output saw a modest uptick in October, as autoworkers produced fewer cars and trucks, according to report from the Federal Reserve.
Output at manufacturing plants rose 0.2 percent in October, the Federal Reserve said Monday. The gains came from the rising demand for machinery, plastics, clothing and furniture. Factory output rose 3.4 percent in the last 12 months.
The downside came in the automotive sector. Car makers produced 1.2 percent fewer vehicles in October, after declines of 1.9 percent in September and 7.2 percent in August. This came despite strong auto sales last month.
A sharp decline in output from the mining and utility sectors drove down total industrial production 0.1 percent last month.
The report was consistent with annualized economic growth of roughly 2 percent a year, significantly below the 3.5 percent rate during the July-September quarter.
Manufacturing has steadily helped fuel economic growth for much of 2014.
Employers have added more than 2.2 million jobs so far this year and the unemployment rate has plunged to a six-year-plus low of 5.8 percent. Stocks have rebounded in the past month to record highs after having slipped in the middle of October. Demand for home electronics, appliances, furniture and carpeting have all perked up.
Moving forward, the Fed says U.S. growth faces new challenges due to a broadening slowdown in Europe, China and Japan. On Monday, Japan unexpectedly slid back into recession, sending global markets downward. Struggles overseas have lessened the demand for American-made goods, but greater domestic demand has more than offset those declines so far.
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