US Industrial Production Growth at 20-Month High

Industrial output in the United States went up 0.7 percent in July from June of 2016, following a downwardly revised 0.4 percent gain in the previous period and better than market expectations of a 0.3 percent increase. It is the biggest rise since November of 2014 boosted by a 0.5 percent growth in manufacturing.
Federal Reserve | Joana Taborda | 8/16/2016 2:26:52 PM
Manufacturing output increased 0.5 percent, the largest gain since July 2015. Durables, nondurables, and other manufacturing (publishing and logging) all recorded gains of about 0.5 percent. Among durables, increases of more than 1 percent occurred in motor vehicles and parts, wood products, and miscellaneous goods. Within nondurables, petroleum and coal products, chemicals, and plastics and rubber products posted gains of 0.8 percent or higher, while printing and support activities registered the only decrease of more than 1 percent. 

The output of mining moved up 0.7 percent with declines in oil and gas extraction more than offset by increases in the indexes for oil well drilling and servicing and for coal. The index has increased modestly, on net, over the past three months after having fallen about 17 percent between December 2014 and April 2016.

The index for utilities rose 2.1 percent as a result of warmer-than-usual weather in July boosting demand for air conditioning. 

Capacity utilization for the industrial sector increased 0.5 percentage point in July to 75.9 percent, a rate that is 4.1 percentage points below its long-run (1972–2015) average. 

On a yearly basis, industrial production fell 0.5 percent. 

US Industrial Production Growth at 20-Month High