U.S. Economy: Industrial Production Falls on Autos

[Joanne98]

By Courtney Schlisserman and Bob Willis

Dec. 15 (Bloomberg) -- Manufacturing in the U.S. slumped further in November as exports tumbled and automakers slashed their assembly rate to the lowest level in more than 18 years.

Industrial production fell 0.6 percent, the third drop in four months, the Federal Reserve said today in Washington. The New York Fed reported the weakest factory performance in its region this month since its survey began in 2001.

Today’s figures may intensify pressure on the Bush administration to prevent a collapse of General Motors Corp., the biggest American carmaker. As consumer demand slides with higher unemployment and a cut-off of credit, manufacturing is poised to keep contracting into 2009, economists said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDLeabe5.clY