U.S. industrial production rose 0.2 percent in August, a slowdown from the 0.9 percent gain the previous month, but strong auto production drove U.S. factory output higher for a second consecutive month, the government reported Thursday. The Federal Reserve (Fed) said factory output rose 0.5 percent last month after rising 0.6 percent in July. Autos and related products increased 2.6 percent, evidence that supply-chain disruptions resulting from the Japan earthquake and tsunami continued to ease. Manufacturing has been one of the strongest sectors of the economy since the recession ended, but it slowed in the first half of this year, partly because of the Japan disaster but also because consumers have become more cautious. Consumer spending accounts for 70 percent of U.S. economic activity, and when it declines, manufacturers respond by slowing their production lines.
