INSTANT VIEW: Industrial output up 0.8 pct in Nov

NEW YORK (Reuters) - U.S. industrial output rose firmly in November as the manufacturing sector extended a recent recovery that economists hope will help turn the country's ailing labor market around.

The United States saw a net capital outflow of $13.9 billion in October after inflows of a revised $127.6 billion the previous month, according to U.S. Treasury Department data on Tuesday.

KEY POINTS:

INDUSTRIAL OUTPUT: * Production climbed 0.8 percent, according to Federal Reserve data released on Tuesday, well above forecasts for a 0.5 percent gain. * The strides were powered in part by the automotive sector, and came despite a sharp drop in utility output. * Capacity utilization, the amount of the nation's industrial capacity being put to use, rose to 71.3 percent in November from a revised 70.6 in October. * That was its highest level since last December but still well below the long range average. * The data were the latest to confirm that the U.S. economy is rebounding from its worst recession since the 1930s, helped both by very low interest rates and a heavy dose of government stimulus.

CAPITAL FLOWS: * September's net capital inflows were originally reported at $133.5 billion. * The data also showed that net long-term capital inflows, which excluded swaps, fell to $20.7 billion from an inflow of $40.7 billion in September.

COMMENTS:

LAWRENCE GLAZER, MANAGING PARTNER, MAYFLOWER ADVISORS, BOSTON:

"The concerns that most of us have now is the timetable for when interest rates will be moving higher and this data sends the message that rates may be moving higher sooner than some investors may have expected and that may really be the 2010 story.

"There's been concerns there's been a lot of complacency in the equity market, but the real complacency may be in the higher quality fixed income market."

STEVE GOLDMAN, MARKET STRATEGIST, WEEDEN & CO IN GREENWICH, CONNECTICUT

"Everything is slightly better than expected, but this is all being overshadowed by the manufacturing report that came out earlier. We're also seeing some weakness out of the overseas markets, but that is being offset by Wells Fargo. There's nothing material here, this is an excuse to make a pullback after making a new recovery high."

TORSTEN SLOK, SENIOR ECONOMIST, DEUTSCHE BANK, NEW YORK

"(The TIC data) is clearly something that's obviously fluctuating a lot but the general fear here is that the rest of the world starts losing appetite for U.S. assets. The observation we have seen here was somewhat below what we expected. But the trends in what has been going on in the TIC data is that the rest of the world has been losing appetite for U.S. debt over the past few years.

"It doesn't mean that much because it's data for October, but the trends definitely give a clear picture that appetite for U.S. debt in particular is declining.

"So far at least in the U.S. there have been some bumps in the road in terms of selling U.S. government debt where the numbers have not come out as good as one had hoped, but the general trend has been that there has been enough demand to buy U.S. government debt.

"When you look forward and ask what is the supply of the debt in the coming year, the number one question for the coming year is will there be enough demand for U.S. debt?

"Many investors see this, that you have these problems elsewhere in the world but in the U.S. what it proves is mainly that the U.S. is not alone with this problem.

"I think it's very important to say that on an absolute scale the U.S. problem is definitely quite significant, but on a relative scale the U.S. problem at least compared to some countries looks smaller, especially compared to some European countries."

MARKET REACTION:

STOCKS: U.S. stock index futures continue to trade lower after data.

BONDS: U.S. Treasury debt prices remain lower.

DOLLAR: U.S. dollar holds gains versus euro.

DATA RELEASED EARLIER DEC 15:

NY state manufacturing slumps

US PPI jumps in November