US Industrial Output Rebounds in June


US industrial output rose 0.6 percent month-over-month in June 2018, recovering from an upwardly revised 0.5 percent contraction in May and matching market expectations. The production of motor vehicles and parts rebounded last month after truck assemblies fell sharply in May because of a disruption at a parts supplier.

Manufacturing production moved up 0.8 percent in June, following a decrease of 1 percent in the previous month. Durable manufacturing surged 1.6 percent (vs -1.6 percent in May), as the production of motor vehicles and parts rebounded last month (7.8 percent vs -8.6 percent) after truck assemblies fell sharply in May because of a disruption at a parts supplier. Output also grew for machinery (0.7 percent vs -1.4 percent); computer and electronic products (1.5 percent vs -0.4 percent) and fabricated metal products (0.9 percent vs -0.5 percent). On the other hand, production of both primary metals and electrical equipment, appliances, and components was unchanged. In addition, nondurable manufacturing edged up 0.1 percent, after a 0.5 percent decline in May, due to increases in production of petroleum and coal products (0.6 percent vs -0.3 percent) and chemicals (0.3 percent vs 0.2 percent). By contrast, food, beverage, and tobacco products output continued to contract (-0.2 percent vs -0.8 percent).

Mining output rose 1.2 percent in June, following a 2.2 percent gain in May, reflecting continued gains in the oil and gas sector.

The index for utilities fell 1.5 percent in June after a 0.7 percent decline in May, as a drop for electric utilities (-2.4 percent vs 3.3 percent) outweighed a gain for gas utilities (4.8 percent vs -20.5 percent).

For the second quarter as a whole, industrial production advanced at an annual rate of 6.0 percent, its third consecutive quarterly increase. Manufacturing increased at an annual rate of 1.9 percent in the second quarter; and mining jumped more than 19 percent.

Capacity utilization for the industrial sector increased 0.3 percentage point in June to 78.0 percent, a rate that is 1.8 percentage points below its long-run (1972–2017) average.


US Industrial Output Rebounds in June


Federal Reserve | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/17/2018 1:35:32 PM