U.S. industrial production grows at its fastest rate since July

In positive news for the U.S. economy, a Federal Reserve report issued today asserts that domestic industrial production increased in November more than originally forecast and consumer prices remained low, indications that the economic recovery is stable and not speeding up the inflation rate.

Output at factories, mines and utilities registered their largest monthly gain since July, rising 0.4 percent, while the consumer-price index only mounted a 0.1 percent rise. The Fed affirmed that assembly lines at factories are seeing increased activity as business investment, exports and consumer spending all clock gains.

John Herrmann, a fixed-income strategist at State Street, told Bloomberg that "the manufacturing sector continues to heal itself," predicting that the "outlook for business spending on equipment and software remains very positive." U.S. businesses have seen increased demand for their goods as the global economy continues to pick up steam.

A poll of economists had predicted a 0.3 percent increase in production. The surge in factory output was led by a 0.9 percent rise in business equipment, a segment of manufacturing that includes computers, communications equipment and semiconductors. U.S. exports hit a two-year high in October amid the increased factory production and surging global demand for U.S. goods.