The output of U.S. factories fell in November, suggesting that weaker global demand and tighter financial conditions have become a drag on the manufacturing sector.
Factory production dropped by 0.6 percent in November after climbing an upwardly revised 0.3 percent in October. Economists had forecast a milder decline of 0.1 percent.
The decline was not just worse than expected, it was twice as large as the bottom estimates of forecasters surveyed by Econoday. Those estimates ranged from a gain of 0.2 percent to a decline of 0.3 percent. Business goods production fell by 0.8 percent, suggesting that businesses are pulling back from capital spending as financing costs rise and an economic downturn looms in the year ahead.
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