Industrial Output Higher Than Expected Last Month

Washington, DC, Oct. 16, 2009--The nation's industrial production rose more than expected in September, the third straight monthly gain, the Federal Reserve reported Thursday.

Output at U.S. factories, mines and utilities rose 0.7 percent after an upwardly revised gain of 1.2 percent in August, the central bank said in a report.

Most economists had forecast a 0.2 percent rise. The previous figure showed August production growing at a slower rate of 0.8 percent.

For the third quarter as a whole, output advanced at an annual rate of 5.2 percent, the first quarterly gain since the first quarter of 2008 and the largest gain since the first quarter of 2005, the Fed said.

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