By David Harrison
U.S. industrial production rose last month, as output continued its slow climb back from deep declines last spring due to pandemic-related shutdowns.
The Federal Reserve on Tuesday said its index of industrial production -- a measure of output at factories, mines and utilities -- rose a seasonally adjusted 1.1% in October, following a revised 0.4% decline in September.
Output remains 5.6% below where it was in February, before the coronavirus pandemic hit, the Fed said.
Economists said they expect to see production continue to make up lost ground in the coming months since demand for goods has held up better than demand for services. But the alarming rise in new coronavirus cases around the country could slow that expansion.
"For December and January all bets are off, given the uncertainty over the extent and duration of the restrictions which will be needed to bring the third Covid wave under control," said Ian Shepherdson, chief economist at Pantheon Macroeconomics in a note to clients.
Industrial production fell at a record pace in the spring as factories were closed to halt the spread of the coronavirus. The Fed's index plunged in March and April before rebounding in June and July. Growth since has been more muted.
Manufacturing, the biggest component of production, rose 1%, after a 0.1% increase in September.
Utility production rose 3.9%, the Fed said. Mining output fell 0.6% and remains 14.4% below its level a year ago.
Capacity utilization, a measure of slack in the industrial economy, rose to 72.8% in October from a revised 72% in September. Economists had expected capacity utilization to reach 72.2% in October.
Write to David Harrison at david.harrison@wsj.com
(END) Dow Jones Newswires
11-17-20 1020ET
