US Industrial Output Rises More Than Expected In June

Industrial production in the United States increased by 0.4 percent month-over-month in June 2017, following an upwardly revised 0.1 percent rise in May and beating market expectations of a 0.3 percent gain. Manufacturing output rebounded from the previous month, while mining rose at a slower pace and utilities showed no growth.
Federal Reserve | Joana Ferreira | 7/14/2017 1:28:54 PM
Manufacturing production rose 0.2 percent, recovering from a 0.4 percent drop in May. Durable manufacturing went up 0.4 percent after falling 1 percent in the previous month, boosted by motor vehicles and parts (0.7 percent from -2.2 percent in May), and machinery (0.6 percent from -0.5 percent). Nondurable manufacturing showed no growth after increasing by 0.2 percent in May, as output fell for food, beverage, and tobacco products (-0.5 percent from -0.3 percent in May), and petroleum and coal products (-0.4 percent from 1.4 percent); but rose for chemicals (0.3 percent from 1.3 percent) and plastics and rubber products (1.1 percent from -1.4 percent).

Also, mining output advanced 1.6 percent after growing by 1.9 percent in the previous month; and utilities output was unchanged after rising by 0.8 percent in May.

Compared to the same month of 2016, industrial production rose 2 percent, as output rose for manufacturing (1.2 percent) and mining (9.9 percent), but fell for utilities (-2.2 percent).

For the second quarter as a whole, industrial production advanced at an annual rate of 4.7 percent, primarily as a result of strong increases for mining and utilities. Manufacturing output rose at an annual rate of 1.4 percent, a slightly slower increase than in the first quarter.

Capacity utilization for the industrial sector increased 0.2 percentage point in June to 76.6 percent, a rate that is 3.3 percentage points below its long-run (1972–2016) average.

US Industrial Output Rises More Than Expected In June