By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — Industrial production in September had a solid increase for the second straight month after tepid gains this summer, another sign of an improving trend in the sector.
Industrial production rose 0.6% in September, the Federal Reserve reported. This is the biggest monthly gain in seven months.
The increase was larger than forecast. Economists polled by MarketWatch had expected 0.4% growth in September. Production rose 0.4% in August.
Overall industrial production increased at a 2.3% annualized growth rate in the third quarter. While not strong, it is better than the 1.1% gain in the second quarter.
The overall gain in industrial production in September was led by utilities output, which rose 4.4% after five months of declines. Utility production is often a function of weather patterns.
Manufacturing output edged up 0.1% after a 0.5% gain in the prior month. Utility production rose 0.2%.
Capacity utilization rose to 78.3% in September from 77.9%. This is the highest rate since July 2008.
After a strong 5.2% gain in August, motor vehicles and parts production rose 2.0% in September. Compared to September 2012, production is up 11.3% in this category, as Americans continue to purchase cars.
U.S. car sales data is due for release on Friday.
Greg Robb is a senior reporter for MarketWatch in Washington. Follow him on Twitter @grobb2000.
