Industrial Output Continues To Drop

The nation’s industrial output fell in May for the third straight month - the first time that has happened since the last recession in 1991.

Despite the gloomy figures, analysts said they doubt the economy is headed into a serious downturn.

The Federal Reserve said Thursday that a steep drop in auto production caused its closely watched gauge of industrial output to fall 0.2 percent last month.

In a sign of easing inflation pressures, the Fed also reported that more slack was apparent for the fourth consecutive month at the nation’s factories, mines and utilities.

“If you believe the figures, things are just getting worse and worse,” said economist Michael Evans. “I don’t know whether to believe that or not.”