Industrial Output Rises More Than Expected

Washington, DC, Nov. 17, 2008 — Industrial output rose more than expected in October after plunging in September by the largest amount in over 60 years.

The Federal Reserve said Monday that industrial output rose 1.3 percent last month, reflecting a return to more normal operations following hurricanes and a strike at aircraft manufacturer Boeing Co. the previous month.

Those disruptions, along with the weak economy, caused industrial production to fall by 3.7 percent in September, the biggest one-month drop since a 5 percent plunge in February 1946.

The 1.3 percent increase in October was bigger than the 0.2 percent rise that economists expected, but the September decline was worse than the 2.8 percent drop originally reported.

Manufacturing posted a 0.6 percent rise in October after falling 3.7 percent in September.