November 16, 2007 (LPAC)--The index of industrial output in the United States, showed a decline of 0.5% in output of factories, mines and utilities compared to last month. The figure was released by the Federal Reserve today. Despite the fact that these kinds of statistics are usually fluffed up and unreliable, the contraction of the U.S. economy is so gross, that the falling index can show nothing else than a declining output across the board. Fed and Treasury Department figures show sub-sector declines:

• Factories made 0.4% fewer goods in October. (Factories account for four-fifths of what's called industrial production, with the remaining portion accounted for by mining and utilities.)
• Utility production dropped 1.6%.
• Mining output, including petroleum drilling, decreased 0.6%.
• Motor vehicle and parts production fell 1%.
• Consumer durable goods production, including furniture and electronics, dropped 0.6%. The decline in sales of consumer durable goods goes along with the home mortgage bubble blow-out. For example, Whirlpool Corp., the largest home appliance manufacturer in the world, posted a decline of 8% in its Third Quarter sales this year.

Capacity utilization of surviving productive facilities is also declining, even as the overall capacity itself has dwindled by the drastic takedown of the auto and other manufacturing sectors. Capacity utilization fell in October to 81.7% down from 82.2% in September. (Capacity utilization is actual production taken as a percentage of potential production from plant and equipment.)