schema:articleBody
| - US industrial production grew slightly more than expected in October, the Federal Reserve said Tuesday, continuing the recovery from the Covid-19 downturn even as a renewed wave of infections looms. Total output increased 1.1 percent last month, with solid gains in manufacturing and utilities, leading the acceleration from the 0.4 percent decline posted in September, according to the data. The index plunged 16.5 percent from February to April as the pandemic arrived, but despite last month's healthy growth, output remained 5.6 percent below its level before the pandemic, the Fed said. Manufacturing -- which plays a major role in calculating GDP -- rose 1.0 percent last month, but was 5 percent below the pre-pandemic level. The business disruptions caused by Covid-19 caused a record decline in second-quarter GDP growth that was only partially recovered with the third quarter's 33.1 percent increase. Utilities led last month's output growth with a 3.9 percent increase, while the mining sector dialed back production 0.6 percent. Consumer goods output recovered last month's decline, while construction supplies gained 1.6 percent, the report said. As the United States grapples with a surge in infections nationwide, Rubeela Farooqi of High Frequency Economics warned factories may struggle to maintain the pace set in October. "Ample capacity and surging virus outbreaks that can interrupt and limit activity are downside risks going forward," she said in an analysis. Industrial capacity in use resumed its recovery, rising to 72.8 percent, but that is still well below the February level. cs/hs
|