Manufacturing Sector Up

Industrial production in the U.S. rose more than anticipated in September, putting manufacturing at the forefront of the emerging economic recovery, Bloomberg News reports. The 0.7% increase in production at factories, mines and utilities exceeded every forecast of economists previously surveyed by Bloomberg News and followed gains of 1.2% in August and 0.9% in July, recent Federal Reserve figures showed.

The improvement has yet to generate jobs, one reason consumers remain anxious and underscoring why Fed policy makers say they will keep interest rates low for now.

Industrial production was forecast to increase 0.2% after a previously reported 0.8% gain in August, according to the median estimate of 77 economists surveyed. Projections ranged from a gain of 0.5% to a drop of 0.5%. Manufacturing accounts for about 12% of the U.S. economy. The jump in production over the past three months was the biggest since late 2005.

Capacity use climbed to 70.5% last month from 69.9 in August, the report showed. It was estimated to rise to 69.8%, according to the Bloomberg survey median.

Factory output, which accounts for about four-fifths of industrial production, increased 0.9% after a 1.2% gain the prior month.