Thomas L. Gallagher | Sep 16, 2009 5:26PM GMT

The Journal of Commerce Online - News Story

Second consecutive month of increase after long decline

Industrial production climbed 0.8 percent in August, in the second consecutive month of growth for the sector as the nation’s factories, mines and utilities get back to work after a long decline.

Industrial output rose 0.8 percent in August, following an upwardly revised increase of 1.0 percent in July, said the Federal Reserve Bank in its monthly report. Production in manufacturing expanded 0.6 percent in August, and the index excluding motor vehicles and parts increased 0.4 percent. The gain in July for manufacturing was revised up 0.4 percentage point, to 1.4 percent. The Fed also revised upward factory output for April through June.

Production at mines moved up 0.5 percent in August. The output of utilities gained 1.9 percent, as temperatures swung from an unseasonably mild July to a slightly warmer-than-usual August.

At 97.4 percent of its 2002 average, total industrial production was 10.7 percent below its level of a year earlier.

In August, the capacity utilization rate for total industry advanced to 69.6 percent, a level 11.3 percentage points below its average for the period 1972 through 2008.

Contact Thomas L. Gallagher at tgallagher@joc.com.