WASHINGTON — A decline in factory production in October signals that consumers and businesses remain cautious in their spending, with the economic recovery likely to be sluggish. At the same time, the weak economy is taming inflation. Wholesale prices rose less than expected last month, giving the Federal Reserve more leeway to keep interest rates low to try to spur a stronger economic rebound.

Industrial production edged up 0.1 percent last month, the Fed reported Tuesday. It was the poorest showing since output fell 0.4 percent in June. Since then, industrial output had posted strong gains, helped by a rebound in auto production.

WASHINGTON — Treasury Secretary Timothy Geithner told Congress on Tuesday that efforts to strengthen the global financial system to prevent another deep crisis will falter if the United States drops the ball on overhauling regulation of its own banking system.

Geithner also echoed remarks by President Obama in Asia that, while the global economy is moving toward a recovery, countries can no longer rely on American consumers to serve as the sole engine of economic growth.

WASHINGTON — The value of loans held by the largest banks that received the most government bailout support fell for an eighth consecutive month in September, according to the Treasury Department.