US industrial output rebounded in October after hurricane disruptions produced a stunning fall in September, but early data suggested manufacturing would suffer this month.
US industrial production rose by a stronger-than-expected 1.3% in October after a downwardly revised September drop of 3.7% - the biggest fall in more than 62 years, according to a Federal Reserve report today.
However, one of the earliest monthly signs of US factory conditions showed that manufacturing in New York state tumbled in November to yet another record low, providing new evidence that the credit crisis was tightening its grip over the economy.
The September fall in industrial output was the steepest since a 5% decline in February 1946. The Fed said the revision to September output resulted, in part, from a larger estimate of the impacts that Hurricanes Gustav and Ike had on the chemical industry.
In a separate report, the New York Fed said its 'Empire State' general business conditions index fell to -25.43 from -24.62 in October. That was the lowest since the inception of the index in July 2001.
The report, based on a survey of manufacturers in New York state, was generally bleak. The indexes for new orders and shipments slid to record lows, while the measures for unfilled orders, employment, and inventories all slipped to their lowest levels since late 2001.
As with many recent reports, the one silver lining was that inflation measures fell, which should give the Federal Reserve leeway to continue holding interest rates low as it fights the effects of the worst financial crisis in 80 years.
The prices paid index fell for the fourth month in a row, and the prices received index tumbled to its lowest level in more than three years, the report said.
