October industrial output rose, Sept revised down

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WASHINGTON (Reuters) - Industrial production rebounded by a stronger-than-expected 1.3 percent in October after a downwardly revised September drop that was the biggest fall in more than 62 years, according to a Federal Reserve report on Monday.

Economists polled by Reuters had expected a rise of 0.2 percent in October, following an initially reported 2.8 percent fall in September.

But the Fed revised the September fall to 3.7 percent -- making it the steepest drop since a 5.0 percent decline in February 1946 as wartime production ended.

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.

Hurricane-affected facilities began to return to production in October, boosting industrial output for the latest month. But a strike at aircraft maker Boeing Co hurt industrial output during both September and October, the Fed said.

The 1.3 percent rebound in October output was the sharpest increase since a matching rise in October 1999.

October's manufacturing output rose 0.6 percent after a revised 3.7 percent fall in September, while October mining output rose 6.1 percent after an 8.5 percent fall in September. Utility output rose 0.4 percent in October after a 2.4 percent rise in September.

(Reporting by David Lawder; Editing by Andrea Ricci)

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