US industrial production mixed after strong gains
Posted: 18 November 2009 0155 hrs

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WASHINGTON: US industrial production figures for October showed a mixed picture Tuesday as manufacturing output eased after several strong months, Federal Reserve data showed Tuesday.

Output at the nation's factories, mines and utilities rose 0.1 per cent after an average gain of 0.9 per cent in the prior three months, the report showed.

Manufacturing output fell 0.1 per cent in the past month, after a jump of 0.8 per cent in September.

Factory production had also surged 1.4 per cent in August and 1.2 per cent in July, fuelled by rising motor vehicle and parts production and a general pick-up in economic activity.

In October, auto production fell 2.0 per cent, reflecting some of the volatility from the government's "cash for clunkers" programme that spurred buying until the incentives ended in August.

The central bank report showed October mining activity fell 0.2 per cent, while utility output jumped 1.6 per cent, helping the overall industrial production index extend gains for a fourth consecutive month.

Capacity utilisation, a sign of slack in the industrial economy, moved up 0.2 percentage points to 70.7 per cent. This is 10.2 percentage points below its average for 1972 through 2008.

Even with the latest rise, industrial production is down 7.1 per cent from a year ago, reflecting the deep recession that has caused industries to slash output.

The industrial sector nonetheless is leading the recovery from recession as consumer spending and other areas of the economy lag, analysts say.

- AFP/yb