U.S. industrial production declined by 0.8 percent in October, the largest decline since May of 2018 as output for the manufacturing, mining and utilities sectors also fell.

Manufacturing output fell by 0.6 percent last month, driven by an 11.1 percent drop in motor vehicle production. U.S. producers assembled cars and trucks in October at an annual rate of 9.14 million units, down 2.5 million since a recent peak in July.

The strike at General Motors added to that decline, contributing to a 1.2 percent drop in durable goods output, the Federal Reserve said on Friday.

But excluding motor vehicles and parts, U.S. manufacturing production still fell by 0.5 percent, the Fed said, and durable goods still dropped by 0.2 percent

Production rose by 0.1 percent for computers and related products, but output for communications equipment fell by 0.4 percent.

The data point to the possible fallout of the U.S. trade war with China, with final production of business equipment falling 0.6 percent amid weak business investment.

Retail sales rebounded moderately 

Retail sales gained by 0.3 percent last month. But the increase in sales, which reversed September's unrevised 0.3 percent drop, reflected higher motor vehicle and gasoline prices.

Auto manufacturers reported a drop in unit sales in October. Compared to October last year, retail sales advanced 3.1 percent.

Signs from the Commerce Department report on Friday that consumer spending was slowing faster than economists had expected, and news that production at factories tumbled again in October, revived concerns about a downshift in the economy, which had receded after a recent raft of fairly upbeat data.

Economists slashed their economic growth estimates for the fourth quarter following Friday's reports.

"The consumer is still spending, but not robustly enough to support other sectors, especially business investment," said Joel Naroff, chief economist at Naroff Economic Advisers in Holland, Pennsylvania.