Economic reports point to slow, steady recovery

WASHINGTON (AP) — Further evidence that manufacturers are helping the economy slowly recover emerged Tuesday in a report that industrial production rose a better-than-expected 0.8 percent in November.

The gain showed that consumers are spending more, causing manufacturers to produce more goods.

Eventually, the economic rebound could raise inflationary pressures. One reminder was a separate report Tuesday that wholesale inflation surprisingly surged last month. Still, many analysts said the economy remains so weak that they didn't think the price increases would last.

The Federal Reserve begins a two-day meeting Tuesday and likely will weigh the bigger-than-expected increases in industrial output and wholesale prices. Should inflation pressures mount, the central bank could be forced to start raising interest rates sooner than expected.

But Fed policymakers aren't expected to raise a key rate at the end of their meeting Wednesday. The Fed has kept rates at record-low levels to bolster the shaky recovery.