US industrial production rises more than expected

US industrial production bounced back in August, rising much more than economists had expected, according to data released on Tuesday by the Federal Reserve.

Industrial output increased by 0.8% last month – the biggest monthly gain since February – following a 0.9% fall in July.

Analysts had expected a rebound of just 0.2%.

By major industry groups, manufacturing output increased by 0.9% over the month, while mining output rose 0.8%, offsetting a stable performance by utilities production.

The Fed said that most of August's expansion came from the auto sector, with production of motor vehicles and parts surging 10.5%. If auto-related production is excluded, output would have risen by just 0.3%.