Industrial Output Rises 0.3% in Nov.

U.S. factories steadily increased production in November, boosting the plant-use rate to the strongest in a year to meet brisk demand at home and abroad, the Federal Reserve said Wednesday.

Total industrial output climbed 0.3%--the 11th straight monthly pickup after a revised 0.8% rise in October.

The nation’s mines, factories and utilities ran at 81% of maximum operating capacity last month, matching October’s rate, which was revised up from the previously reported 80.7%.

It was the fastest operating rate since 81.5% in October 1998, and all indications are that the industrial sector will be even busier in coming months.

Output grew by 0.5% at manufacturers and by 0.7% at mining companies. But mild weather that reduced heating needs in much of the country led to a 2.3% plunge in utilities production.

A Commerce Department report said inventories on hand at U.S. businesses grew in October at the slowest rate in six months as sales rebounded from a September slump.

Inventories rose 0.2% to a seasonally adjusted $1.13 trillion, half the 0.4% rise posted in September.

But sales rebounded 0.5% to $846.7 billion in October after falling 0.2% in September. That held the inventory-to-sales ratio, which indicates how soon stocks will be depleted at the current sales pace, to a historic low of 1.33 month’s worth. That means manufacturers, wholesalers and retailers likely will rush to build up stocks in coming months.

The latest data underlines the economy’s momentum as it nears a record in February of 107 months of unbroken growth. It is expected to have little impact on Tuesday’s meeting of the Fed’s Open Market Committee, which is expected to keep rates steady.