WASHINGTON – In the latest sign that the economy continues to recover, U.S. industrial output surged last month to top its pre-recession peak, the Wall Street Journal reports.

Industrial production was up 1.1% from the prior month, the Federal Reserve said, the biggest jump in the year and a sign of growing demand for an array of industrial goods. "It does look like there is a little momentum building here," said J.P. Morgan economist Daniel Silver. "We're getting a little more optimistic as we get these numbers."

Manufacturing remains below its prerecession peak, though it grew 0.6% in November, the fourth consecutive month of gains. Overall factory output is up 2.9% from last year.

Automotive output growth led the increase, with production at its highest level in eight years.

Makers of textiles, oil and coal, wood products, fabricated metals, electrical equipment, appliances, and furniture also increased production. Utility production was up strongly for November, climbing 3.9%, while mining output grew 1.7%,

Other metrics also point to economic growth. The unemployment rate fell to 7% last month, its lowest level in five years. And retail sales posted strong gains, with consumer demand solid for many goods.