CNNMoney.com – At last good news about factory production in this year, it seems that we will have a rise in production in October after the drop-off happen in September, which was the worst in 62 years according to the federal reserve reports.
The rise reach 1.3% from the previous month and that was a shock for most of economists who was expecting a rise of 0.2%, according to Briefing.com. It was the largest monthly increase in factory output since October 1999.
Federal Reserve said that the drop in September was due to Hurricanes Gustav and Ike’s disastrous effects on the Gulf Coast industry as well as a Boeing workers’ strike that month, the rise in October is due to the drop in September which reached to 3.7%.
“We’re getting a little bounce back from the hurricane, but this is a kind of one-off rise,” said John Silvia, chief economist at Wachovia. “The production numbers still show we’re in recession territory.”
Industrial production is one of the four factors that the National Bureau of Economic Research considers to determine if the nation’s economy has fallen into a recession. The other three factors are employment, personal income and retail and wholesale sales of manufactured goods.
Manufacturing output increased 0.6% in October, and the factory operating rate rose slightly to 73.8%. But factory operations are still nearly six percentage points below the average rate from the 35-year period from 1972-2007.
