Industrial Output Is Depressed by Katrina [View All]

[tex-wyo-dem]

By MARTIN CRUTSINGER, AP Economics Writer 1 hour, 22 minutes ago

WASHINGTON - Industrial output rose only slightly in August as Hurricane Katrina severely cut back production of petroleum and chemicals along the Gulf Coast.

The Federal Reserve reported Wednesday that industrial output rose a tiny 0.1 percent last month — far below economists' expectations — as Katrina, which struck the Gulf Coast on Aug. 28, forced sharp cutbacks in oil and natural gas extraction in the Gulf of Mexico and also depressed output at refineries and chemical plants in the areas hit by the hurricane.

Without the adverse effects of the hurricane, industrial output would have been 0.3 percentage point higher, the Fed estimated.

A second report on retail sales showed that the economy was weakening even before Katrina struck.

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http://news.yahoo.com/s/ap/20050914/ap_on_bi_go_ec_fi/economy_30