US Industrial Output Posts Biggest Gain in 1 Year

Industrial production in the United States increased 0.6 percent in June from May 2016, recovering from a downwardly revised 0.3 percent drop in the previous period and better than market expectations of a 0.2 percent gain. It was the biggest gain since July last year, as output of manufacturing, mining and utilities moved up.
Federal Reserve | Joana Ferreira | 7/15/2016 2:31:16 PM
Manufacturing output rose 0.4 percent in June; for the second quarter, however, factory output decreased at an annual rate of 1.0 percent. The production of durables jumped 0.9 percent in June, the production of nondurables edged down 0.1 percent, and the production of other manufacturing (publishing and logging) fell 1.5 percent. Within durables, gains of greater than 1 percent were registered by machinery; electrical equipment, appliances, and components; and motor vehicles and parts. Within nondurables, apparel and leather, paper, chemicals, and plastics and rubber products recorded declines that were largely offset by increases elsewhere; the largest gain was registered by printing and support.

The index for utilities rose 2.4 percent as a result of warmer weather than is typical for June boosting demand for air conditioning.

The output of mining moved up 0.2 percent for its second consecutive small monthly increase following eight straight months of decline. A rise in the index for oil well drilling and servicing and a second consecutive large monthly increase in the index for coal more than offset declines in oil and gas extraction and in non-metallic mineral mining.

At 104.1 percent of its 2012 average, total industrial production in June was 0.7 percent lower than its year-earlier level.

Capacity utilization for the industrial sector increased 0.5 percentage point in June to 75.4 percent, a rate that is 4.6 percentage points below its long-run (1972–2015) average.

US Industrial Output Posts Biggest Gain in 1 Year