Industrial Production Edges Up in October

Washington, DC, Nov. 17, 2009-- Industrial production rose 0.1 percent in October, a less-than-expected increase.

Stronger activity at electric and gas utilities drove last month's gain, but production at factories — the single biggest slice of industrial output — declined.

That's troubling because it suggests that consumers and businesses remain cautious in their spending, which could continue to restrain manufacturing activity, tempering the strength of the recovery.

Economists expected the Federal Reserve report Tuesday to show overall industrial production grew 0.4 percent in October.

The 0.1 percent increase followed a 0.6 percent gain in September, slightly smaller than initially reported. But production rose 1.3 percent in August, better than previously estimated.

Even though overall industrial production rose for the fourth straight month, growth has slowed considerably.

At factories, production actually fell 0.1 percent last month after a 0.8 percent increase in September. It was the first decline since June.

Production cutbacks were logged last month not only for cars, but also for appliances, furniture and carpeting, clothing, computer and electronic products, paper products, petroleum and coal products, fabricated metal products and other things.