US industrial output bounces back

Oil production is back to normal after hurricanes Ike and Gustav

US industrial output rebounded in October after a sharp fall in September, the Federal Reserve says.

Output rose by 1.3% during the month, compared with a fall of 3.7% in September - the sharpest fall in production for over 60 years.

The upturn can in part be explained by the return to normal operating conditions following the hurricanes Gustav and Ike.

The rebound was much larger than many analysts had expected.

Output at US mines, which includes oil drilling, rose 6.1%, reflecting the resumption of production on Gulf Coast rigs.

Production at utility companies was up 0.4%.

The better-than-expected output figures had little effect on the Dow Jones stock index, which was down 140.5 points, at 8358.56, in early trading.