New Signals Suggest Economic Rebound

After months of bad news, the economy appears to have gotten a second wind.

The government said Friday that industrial production was up 0.1 percent in June, a modest gain but still the first one since January. In addition, retail sales jumped a strong 0.7 percent, indicating consumer activity was reviving.

But the increased economic activity did not spur higher inflation. In fact, consumer prices rose just 0.1 percent in June, the smallest increase since last November, as moderation in clothing and food prices offset a second sharp jump in energy costs.