WASHINGTON -- Hurricane Sandy appears to have done a lot more economic damage than many experts thought.
The Federal Reserve said Friday that manufacturing production fell across almost all major industries in October – a drop officials blamed on the storms that struck the Northeast late last month.
Even with mining activity growing and utility output holding steady, industrial production overall slid 0.4% last month. The Fed thinks Sandy knocked nearly a full percentage point off total production after increasing 0.2% in September.
The report surprised analysts, but it comes on the heels of other economic data pointing to Hurricane Sandy’s effects: Retail sales fell across most segments last month, and unemployment claims saw a huge spike last week, suggesting that job growth for October may also turn out weaker than expected.