WASHINGTON — Industrial production increased 0.4% in November to post its largest gain in four months, the Federal Reserve reported Wednesday.

Capacity utilization rose to a 25-month high of 75.2% from 74.9% in October.

Economists expected industrial production to increase 0.3% and capacity utilization to expand slightly to 75.0%. Industrial production in October was revised downward to a decline of 0.2%, which was originally recorded to as unchanged, and capacity utilization was revised higher by 0.2 percentage points.

"A moderate industrial and manufacturing recovery is underway," said Steven Wood, chief economist at Insight Economics. "The level of manufacturing activity is still subdued, with substantial excess capacity."

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