Capital flows fell $163 billion in August

U.S. capital flows in the fell by $163 billion in August, according to a report from the Department of the Treasury. The figure includes the change in banks' dollar-denominated liabilities, which comprised most of the loss. Those liabilities fell by $111.4 billion in August, after it rose by $40.9 billion in July. Meanwhile, investors purchased $21 billion in Treasury bills in July. Net foreign purchases of long-term U.S. securities fell by $34.9 billion in August. U.S. equities and Treasury bonds were sold the fastest. Private investors sold $39 billion in equities, while official institutions sold $29.7 billion in Treasury bonds and notes. In another economic report, U.S. industrial production increased 0.1% in September, according to the Federal Reserve. The report also put September's capacity utilization rate at 82.1%. August production was revised down to no change from the 0.2% increase first reported, and capacity use was cut by 0.1% to 82.1%. The Fed report showed that production of autos and auto parts increased 3.3% last month, following a 1.6% drop in August; all manufacturing posted a 0.1% increase following a 0.4% drop;and output at utilities fell 0.1% in September following a 4.6% increase.