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Industrial production dips 0.2 percent in September

Activity by U.S. manufacturers declined for a second month in September as tepid demand from overseas and high inventories capped production, according to data released by the Federal Reserve.

Friday's report is another indication that the U.S. economy slowed in the third quarter.

Total industrial production, which includes mining and utilities, fell 0.2 percent in September. The prior month's decline was revised to a 0.1 percent drop from an initial 0.4 percent fall.

Factory output fell 0.1 percent, following a revised 0.4 percent drop in August.

"Outside of autos, industrial production remains challenged for the reasons we all know," emailed Peter Boockvar, chief market strategist at the Lindsey Group. "Manufacturing production excluding autos has basically flat lined over the past year as the drop in mining has overwhelmed auto production."

A rising U.S. currency has most U.S. goods more costly in overseas markets, with the decline in demand in foreign markets partially offset by strong consumer demand for automobiles.

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