Industrial Production Inches Up In October

11-18-2009 | Source: emii.com

The Federal Reserve revealed on Tuesday that industrial production crept up by 0.1% in October. The increase was less than analysts’ prediction of 0.4% after an increase of 0.6% in September, Reuters reports. The slowed rate of production growth was largely thanks to reduced automotive manufacturing after the end “cash for clunkers” program.

The slim gain marked the fourth consecutive increase in monthly industrial production, but production levels are still down 7.1% compared with the same time last year. Capacity utilization rose to 70.7% from 70.5% in Sept., falling short of estimates of a move to 70.8%, reports Bloomberg.

The index of durable consumer goods fell 1.4% in Oct., which included a 1.7% loss in the output of automotive products, after September gains in the auto sector of 8.1%. The biggest gain in the month was made in utility production, which was up 1.6% last month, while small decreases were seen in the production of business equipment and electronics.

On Tuesday the Labor Department released a report on producer pricing, which was up 0.3% last month. Prices excluding food and energy, however, were found to be down 0.6% in October.

Click here to read the full report from the Federal Reserve.

Click here to view the full release from the Labor Department.

Click here to read the report from Reuters.

Click here for additional coverage from Bloomberg News.