Industrial production shows improvement
Industrial production rose in September and a gauge of manufacturing in New York state hinted at stabilization in October, suggesting that the factory sector will keep supporting the economic recovery, Reuters reported.
Industrial production rose 0.2 percent last month as a gain in manufacturing offset a drop in utility output, a Federal Reserve report showed. August’s reading was downwardly revised to show flat output.
Manufacturing production rose 0.4 percent, with consumer durables rising 0.9 percent as production rose for automotive products and home electronics.
“Despite signs of a slowdown in global economic growth, U.S. manufacturing output is still expanding at a solid pace,” said Paul Ashworth, chief U.S. economist at Capital Economics.
The New York Federal Reserve Bank’s Empire State index provided a more mixed picture. The general business conditions index contracted for a fifth month in a row, though the pace moderated slightly and new orders improved, Reuters said.
The survey of manufacturing plants in the state is one of the earliest monthly indicators of U.S. factory conditions.