(Photo: GM/Mike Stone UNITED STATES)

WASHINGTON A strong increase in auto output boosted U.S. factory production last month, the latest sign that manufacturing is helping drive economic growth after lagging for much of 2012.

The Federal Reserve says factory output rose a seasonally adjusted 0.8 per cent in February from January, after falling 0.3 per cent in the previous month.

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The biggest gain was in autos and auto parts, wher production increased 3.6 per cent after falling 4.9 per cent in January. Car sales have risen steadily this year after reaching a five year high in 2012.

Overall industrial production, which includes mining and utilities, rose 0.7 per cent in February. That is the most in three months. Utility output jumped 1.6 per cent while mining output, which covers oil and gas drilling, fell 0.3 per cent, the third straight decline.