U.S. industrial production continued its downward trend in November, marking a third consecutive month of decline, according to a report from the Federal Reserve on Tuesday.

Industrial output dropped by 0.1% in November, following similar declines in September and October. The slump came as a surprise, with analysts expecting a 0.3% increase, as per Briefing.com.

A significant factor behind the November downturn was a sharp drop in utilities production, which reversed the gains seen in the previous month. Pantheon Macroeconomics Chief U.S. Economist Samuel Tombs attributed this to unusually warm weather in October, which had spiked demand for air conditioning.

While final products saw an uptick, nonindustrial supplies and materials experienced a decrease. Manufacturing, one of the major industry groups, saw a slight overall rise, but this was overshadowed by declines in both mining and utilities.

Tombs noted that the manufacturing sector is “limping” toward the end of 2024, with the recent weakness partly attributed to a strike at Boeing, the U.S. aerospace manufacturer. The aerospace and miscellaneous transportation equipment category saw a sharp 2.6% decline, despite the resolution of a work stoppage at the major aircraft manufacturer in early November.