Industrial Output Rises in October

Washington, DC, Nov. 17, 2011 -- Industrial production rose 0.7% in October, the Federal Reserve said, in another sign the manufacturing industry is still expanding.

The October gain was the biggest since July and was stronger than the 0.4% increase expected by analysts.

However, industrial output in September was revised to a decline of 0.1% compared with the initial estimate of a 0.2% gain.

Factory activity alone rose 0.6% in October after a 0.2% increase in September.

Capacity utilization, a gauge of slack in the economy, rose to 77.8% in October from 77.3% in September. Capacity utilization has been rising slowly and is at its highest level since July 2008.

The output of construction supplies rose 0.1% in October after a 0.4% increase.