U.S. industrial output turned in another weak reading in September as the short strike at General Motors contributed to a big drop in auto production.

The Federal Reserve today reported that industrial output edged up 0.1% in September following no change at all in August. The August reading had been reported a month ago as a stronger 0.2% gain.

The concern is that the deep slump in housing and a severe credit crunch will trigger further cutbacks in industrial production as businesses grow cautious about the future.

Delivering his latest assessment on the economic prospects, Federal Reserve chairman Ben Bernanke said Monday night the deepening slump in housing will be a “significant drag” on the economy into next year and it will take time for financial markets to fully recover from the credit crisis that erupted in August.

The Fed report showed that output of autos and auto parts fell by 3.3% in September following a 1.6% drop in August. Part of the September weakness was blamed on the brief two-day strike at General Motors.