Dec 14, 2016 1 min read

WASHINGTON – U.S. industrial production dropped sharply in November as power plants reduced output because of unusually warm weather.

The Federal Reserve reported Wednesday that output at America’s factories, mines and utilities fell 0.4 percent last month. It was the biggest decline since March.

Utility output plunged 4.4 percent, following a 2.8 percent downturn in October. A warm fall meant Americans used less heat.

Factory output slipped 0.1 percent. A drop in auto production offset increased output of metals.

Mining production rose 1.1 percent despite a steep drop in output at coal mines.

Industrial production has now dropped three of the last four months and has fallen 0.6 percent in the past year. November’s drop was steeper than economists had expected.

American industry has been hurt by a strong dollar, which makes U.S. goods costlier in foreign markets. Factory production is up just 0.1 percent over the past year.

Energy companies have slashed production in the face of low oil prices. That is why mining output is down 4.6 percent since November 2015 despite the uptick last month.

Mines have shed 87,000 jobs over the past year, and factories have lost 54,000.