Auto Worker Strikes Slow Production

The output of the nation’s factories fell in October for the first time in seven months as auto worker strikes slowed production while some businesses were trimming inventories.

The Federal Reserve said Friday the ripple effect of the strike at General Motors’ Canadian plants and later disputes that closed some of GM’s U.S. assembly lines was largely responsible for the overall 0.5 percent decline.

But the report also showed that excluding auto plants, output at the nation’s factories, mines and utilities was down 0.2 percent, with most industries sharing in the loss.

A separate Commerce Department report Friday showed growth in business inventories slowed to just 0.1 percent in September, from 0.3 percent in August and 0.5 percent in July.

At the same time, sales picked up 0.8 percent in September after slipping 0.2 percent the previous month.

The Fed report contained no sign of inflation, saying the nation’s industries were operating at 82.7 percent of capacity, down from 83.4 percent in September.