U.S. Industrial Production Climbs More Than Expected In July

inddustrial production2 081622 lt

A report released by the Federal Reserve on Tuesday showed U.S. industrial production increased by more than expected in the month of July.

The Fed said industrial production climbed by 0.6 percent in July following a revised unchanged reading in June.

Economists had expected industrial production to rise by 0.3 percent compared to the 0.2 percent dip originally reported for the previous month.

"The 0.6% m/m rise in industrial production in July was much stronger than we expected and provides another clear sign that the economy is still in expansionary territory," said Andrew Hunter, Senior U.S. Economist at Capital Economics.

He added, "That said, the likely drag on manufacturing from the impending global economic downturn means that resilience of production may not last for long."

The bigger than expected increase in industrial production came as manufacturing output advanced by 0.7 percent in July after falling by 0.4 percent for two straight months.

Mining output also climbed by 0.7 percent in July after jumping by 2.0 percent in June, while utilities output slid by 0.8 percent after slipping by 0.3 percent.

The report also showed capacity utilization in the industrial sector rose to 80.3 percent in July from a revised 79.9 percent in June.

Economists had expected capacity utilization to inch up to 80.1 percent from the 80.0 percent originally reported for the previous month.

Capacity utilization in the manufacturing and mining sectors edged up to 79.8 percent and 88.0 percent, respectively, while capacity utilization in the utilities sector fell to 74.5 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Netflix, Inc. said it is adding a new feature to offer a more personalized mobile games experience on the platform. In a statement, Sophia Yang, Product Manager, Mobile Games, said the company is rolling out the ability to create game handles, with which members will be able to create a unique public username. This can be used across all Netflix games. General Motors Co. has delayed its plan to require employees to return to office many days a week until next year, reports said citing an internal memo signed by CEO Mary Barra. Last week, the company had announced that corporate workers would be required to return to respective offices at least three days a week, beginning later this year, as the COVID-19 pandemic eases. Ford Motor Co. is seeking a new trial in a Georgia court after a jury reached a $1.7 billion verdict in a lawsuit against the automotive major regarding a truck rollover accident, The Wall Street Journal reported. In the new court filings, Ford said it was unfairly precluded from providing evidence and thus defending against claims that its trucks were defective.
Follow RTT