Industrial production worse than expected in Jan.
WASHINGTON — Big industry production throttled back in January due partly to auto shutdowns, and housing construction tumbled to a record low, weaker-than-expected performances that show the country caught in a worsening economic tailspin.
The Federal Reserve reported this morning that production at the nation's factories, mines and utilities fell 1.8 percent last month. Many economists expected a 1.5 percent decline.
It marked the third straight month where production was cut back and December's performance was even weaker than initially reported, plunging 2.4 percent.
Another report from the Commerce Department said construction of new homes and apartments plunged 16.8 percent in January from the previous month, to a seasonally adjusted annual rate of 466,000 units, a record low. Analysts expected a pace of 530,000 housing units.
Analysts are hoping that a boost from government programs, including new White House efforts to stem foreclosures, will help stop the slide.
The pair of reports underscored the growing toll wrought by a trio of crises — housing, credit and financial — that are the worst since the 1930s.
