Wall Street Journal (10/16/14) Nick Timiraos

Economic activity in the U.S. seems to have stabilized, according to several economic reports. Led by a sharp increase in electricity production, industrial production rose 1.0% in September, the largest monthly increase since May 2010 and up from a 0.2% decline in August, according to the U.S. Federal Reserve. Manufacturing output, meanwhile, rose 0.5% in September, following a 0.5% decline in August.

New jobless claims are the lowest since June 2008. Claims as a share of the labor force are the lowest since they began being reported in the 1970s, and the annual pace of job growth is the best since 1999. However, crude oil prices have decreased more than 20% since early June, and it is unclear what effect this will have on the economy.

Federal Reserve Bank of Philadelphia (10/16/14)

Firms responding to the Federal Reserve Bank of Philadelphia’s October Manufacturing Business Outlook Survey indicated continued growth in the region’s manufacturing sector this month. However, most broad indicators of current growth, while positive, weakened from higher readings last month. The current activity, shipments, and employment indexes declined, while the index for new orders was at a higher level compared with September. The survey’s indicators for future manufacturing conditions fell from higher readings but continued to reflect general optimism about growth in activity and employment over the next six months.

The survey’s indicators for labor market conditions suggest some moderation in employment growth this month. Although positive for the 16th consecutive month, the employment index decreased nine points. Twenty percent of firms reported increases in employment, exceeding the percentage reporting decreases (8%). For the first time in eight months, the workweek index was slightly negative.