U.S. industrial production contracts in October

The Federal Reserve Bank of the United States released production data for the country for October on Friday, showing a contraction in industrial production in the United States alongside a drop in the capacity utilization rate.

Month-on-month, industrial production in the United States shrank by 0.3%, matching market expectations that also predicted a 0.3% contraction in U.S. industrial production, after it had recorded a contraction of 0.5% at the end of September.

At the same time, the data indicated that the capacity utilization rate in the United States declined to 77.1% in October, which was worse than market expectations that had anticipated a decrease in the capacity utilization rate to 77.2%, after it was recorded at 77.4% in September.

It is worth noting that this index measures the change in the value of inflation-adjusted production generated by factories, mines, and utilities. Therefore, this index is one of the leading indicators reflecting the health of the economy, as production is quickly influenced by the business cycle, and it is also related to consumer conditions in terms of employment and wage levels.

Additionally, the industrial production index is considered one of the leading indicators for measuring the health of the economy, as production is quickly affected by fluctuations in the business cycle, in addition to being linked to consumer conditions such as employment levels and earnings.