Sitting the 生員 (Shēngyuán) Exam
Joe Klein Is Shrill!

Falling Industrial Output

Rex Nutting:

Industrial output plunges 0.7% in April: WASHINGTON (MarketWatch) -- Industrial output of the nation's factories, mines and utilities dropped 0.7% in April in a broad-based decline led by falling production of motor vehicles, the Federal Reserve reported Thursday. Output of factories fell 0.8%, the biggest decline since September 2005, when Hurricane Katrina disrupted the economy. Industrial production has risen 0.2% in the past year, and is down 1.2% since January. The decline in output was worse than the 0.6% drop expected by economists surveyed by MarketWatch.... Capacity utilization -- a key gauge of inflationary pressures -- fell from 80.4% to 79.7%, the lowest since September 2005 and 1.3 percentage points below the long-run average. Slack capacity typically leads to slower inflation, as producers underbid each other to get work. Capacity utilization in manufacturing dropped to 77.5%, the lowest since November 2004...

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