Weather Cools Industrial Production

Cool weather that prompted Americans to turn down air conditioners in September caused the first drop in industrial production in five months.

But factory output rose for the second straight month, a sign that manufacturing is recovering from the doldrums.

The Federal Reserve reported Tuesday that industrial production slipped 0.2 percent last month, the first decline since it fell 0.6 percent in April. A 5.4 percent dive in utility output, thanks to falling demand for electricity, more than offset a 0.2 percent increase in factory production.

“The inventory correction is largely over and the manufacturing sector is rebounding as a result,” said economist Mark Zandi. “The economy is expanding moderately with little or no inflationary pressures,”