The Federal Reserve announced that production dropped 0.2% compared to August, although it was up 5.4% from September 2009. Economists were expecting a 0.2% increase. “U.S. manufacturing output contracted by 0.2% in September, illustrating that the previously robust recovery in the factory sector is definitely behind us now and this could even be the start of a renewed downturn,” said Paul Ashworth, Senior U.S. Economist at Capital Economics. The biggest decrease came from appliances, furniture and carpeting as well as from energy, both of which saw 1.9% decreases. In the third quarter, U.S. industrial production rose at an annualized 4.8% rate, slower than the approximately 7% growth reported in the first and second quarters.