Restocking, in turn, requires stepped-up production, and when that happens, the recovery is on its way - unless consumption falters.

Milk prices, reflecting stepped-up production, dropped 60 cents from September, to an October average of $13.60 a 100 pounds.

The increase in corporate inventory slowed, another sign of stepped-up production.

The Energy Department has recommended stepped-up production of ethanol, a corn-based moonshine that is blended with gasoline to make cleaner-burning gasohol.

Analysts noted, however, that depleted inventories represent a positive factor for gauging future economic activity, since any increase in demand will quickly require stepped-up production.

If so, the stepped-up industrial production needed to fill the new orders would give the economy a lift.

He added that stepped-up production in recent years to supply a growing export market accounted for a third of the nation's economic growth.

Some analysts expressed concern that stepped-up production could lead to a buildup in auto inventories and another round of price incentives.

Milk prices, reflecting stepped-up production, dropped 40 cents from October to November, to $12.80 for 100 pounds.

But the expected stepped-up production and rising profits in those industries will help the regions around them in other ways.