July U.S. Industrial Production Jumped 1.0% vs. June

In July, total industrial production increased 1.0% following declines in the previous two months, according to data released Aug. 16 by the Board of Governors of the Federal Reserve.

Manufacturing output rose 0.5% in July. The production of motor vehicles and parts jumped 5.2%, while factory output elsewhere increased 0.1%.

The index for mining moved up 0.5Z%, while the index for utilities climbed 5.4%, as “very high temperatures in July raised demand for cooling,” the board said.

At 102.9% of its 2017 average, total industrial production in July was 0.2% below its year-earlier level. Capacity utilization moved up to 79.3% in July, a rate that is 0.4 percentage point below its long-run (1972–2022) average.

Manufacturing output rose 0.5% in July. But the growth rates for the previous three months were revised down. Overall, the index for manufacturing in July was 0.7% below its year-earlier level. In July, the indexes for durable and nondurable manufacturing increased 0.8% and 0.1% respectively.

In durable manufacturing, gains of 1% or more were registered by motor vehicles and parts (5.2%, machinery (1.3%), and computer and electronic products (1.0%). In contrast, losses of 1% or more were recorded by electrical equipment, appliances, and components (1.7%); primary metals (1.2%); and furniture and related products (1.2%). Within nondurable manufacturing, modest declines in the indexes of paper, of plastics and rubber products, and of apparel and leather were more than offset by gains elsewhere.

Source: tradingeconomics.com