Industrial Output Up More Than Expected

For the third consecutive month, production output at America’s factories, mines, and utilities has risen in September more than analysts expected. However, analysts have warned that industrial output may slow significantly once federal stimulus money has all been spent and industrial companies must once again rely on their own capital.

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September’s increase came largely from increased production of auto vehicles and parts, which was in part due to the government’s Cash for Clunkers program and its impact on the demand for new vehicles. Steel and other industrial sectors also posted increases while General Electric posted growth in its industrial businesses in the third quarter.

According to the Federal Reserve, industrial production rose 0.7 percent in September, which beats the 0.2 percent estimate on Wall Street by a significant margin. The Fed also revised its figures for August output, boosting the 0.8 percent growth number to 1.2 percent.