Industrial Production Rises More Than Forecast

[Purveyor]

By Alex Kowalski - Wed Nov 16 14:55:33 GMT 2011

Industrial production in the U.S. advanced more than forecast in October, a signal manufacturing is contributing to fourth-quarter growth.

Output at factories, mines and utilities climbed 0.7 percent after a revised 0.1 percent drop in September, figures from the Federal Reserve showed today. Economists forecast a 0.4 percent gain, according to the median of 83 estimates in a Bloomberg News survey. Factory production, which makes up 75 percent of the total, increased 0.5 percent.

Producers are benefiting from rising sales both abroad and in the U.S., easing fears a global slowdown might curtail American manufacturing. The need to replenish low stockpiles may further stimulate factory output in the event consumer spending continues to pick up into the holiday season.

“The combination of increases in demand and very low inventory levels will be positive for manufacturing and production,” said Conrad DeQuadros, a senior economist at RDQ Economics LLC in New York. “ The economy is growing. The data that have come out are pointing to moderate growth.”

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http://www.bloomberg.com/news/2011-11-16/industrial-production-in-u-s-climbs-0-7-more-than-economists-estimated.html