US Industrial Production Rebounds

Industrial output rose 0.3 percent in June from May, beating market expectations and recovering from contraction in the previous two months. It is the highest gain in seven months boosted by mining and utilities while manufacturing was flat.

Manufacturing output was unchanged in June and increased at an annual rate of 1.4 percent in the second quarter of 2015. In June, the output of nondurables posted a small increase. Within nondurables, chemicals and products posted the largest advance, 0.7 percent, while all of the other major industries registered gains or losses of less than 1/2 percent. The output of durables edged down. Among durable goods industries, the indexes for motor vehicles and parts and for wood products dropped substantially, while the indexes for computer and electronic products, for furniture and related products, and for miscellaneous manufacturing each rose substantially. The indexes for other durable goods industries were little changed. The output of other manufacturing industries (publishing and logging) fell nearly 1 percent. 

The index for mining advanced 1.0 percent as a result of an increase in crude oil extraction. The index for oil and gas well drilling and servicing fell for the seventh consecutive month, although the decrease, about 3 percent, was its smallest since December; the index in June was nearly 50 percent below its November level. Coal production fell sharply in June, its third consecutive monthly decline. For the second quarter of 2015, mining output dropped at an annual rate of 5.7 percent. 

The output of utilities increased 1.5 percent in June but fell 13.5 percent at an annual rate in the second quarter of 2015.

The capacity utilization rate for manufacturing edged down 0.1 percentage point in June to 77.2 percent, a rate 1.4 percentage points below its long-run average. The operating rate for durable goods factories declined 0.3 percentage point to 76.5 percent, and the operating rate for nondurable goods manufacturing edged up 0.1 percentage point to 79.6 percent. The utilization rates in each sector remained below their long-run averages, though by 1 percentage point or less. The capacity utilization rate for other manufacturing (publishing and logging) decreased 0.4 percentage point to 57.2 percent, a rate 24.0 percentage points below its long-run average. The utilization rate for mines moved up 0.7 percentage point to 84.1 percent, while the rate for utilities increased 1.2 percentage points to 80.7 percent.

US Industrial Production Rebounds

Fed | Joana Taborda |
7/15/2015 2:26:17 PM