US industrial output rebounds in October – Channel NewsAsia

US industries cranked up production in October after a mild contraction the previous month, boosted by a strong rebound in mining, the central bank said on Wednesday.

October industrial production rose 0.7 percent from September, the Federal Reserve said, widely topping analysts’ forecasts.

But the Fed sharply lowered the September reading to a 0.1 percent decline from its initial estimate of a 0.2 percent increase.

The October expansion was led by a 2.3 percent jump in the mining sector, rebounding from a half percentage point fall in September.

Manufacturing output rose 0.5 percent, the fifth straight month of gains, while utilities production fell for the third month running, by 0.1 percent.

Overall industrial output was 3.9 percent higher than in October 2010.

Ian Shepherdson, chief US economist at High Frequency Economics, said the report represents “a reasonably solid start” to the fourth quarter, and predicted further gains in both November and December.

“The sector is expanding but hardly booming,” he said, noting that output remained 9.2 percent lower than the pre-recession peak, more than two years after the recession ended.

via US industrial output rebounds in October – Channel NewsAsia.

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