Washington, DC, December 15, 2006--Industrial production rose by an overall 0.2% in November, as the auto sector showed signs of life after sharp declines in the past two months, the Federal Reserve said Friday.
Economists had expected production to remain flat in November.
Output in October was revised to be flat, down from the initial estimate of a 0.2% gain.
Over the past year, industrial production has risen 3.8%.
Production of motor vehicles and parts rose a sharp 3.7% in November after sharp declines in the past two months. The production of motor vehicles had reached its lowest level in more than four and a half years in October, the Fed said.
Despite the jump in November, output of cars and parts is still 2.5% below its year-earlier levels, the Fed said.
Manufacturing output rose by 0.3% in November after a 0.5% drop in October.
Business equipment production posted a 1.2% gain in November, the fastest pace of increase since July.
The production of information processing equipment rose 1%.
The output of construction supplies declined for the fourth straight month.
Output at mines and utilities dropped in November, the Fed said. Utility production fell 0.1%. Mining declined 0.2%.
Capacity utilization remained steady in November at 81.8% from October.
Economists had forecast a slight increase in capacity utilization to 82.1%.
Manufacturing capacity utilization held steady at 80.3%. Capacity utilization at mines and utilities fell.
The output of consumer goods increased 0.3%, led by a gain in durable consumer goods.
In another report released Friday, the Labor Department said consumer price inflation was tame in November.
