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
Seffner, Florida -based Canyon Furniture Co. is recalling ladders sold with bunk bed and hutch sets citing entrapment and strangulation risks, the U.S. Consumer Product Safety Commission said. The about 2,100 units of Canyon Lake and Cottage Colors Bunk Bed and Hutch Sets were sold exclusively at Rooms To Go. Lyft announced the expansion to its partnership with Indeed in Jobs Access program. The ride-hailing company will be providing transportation access for Indeed's Ready to Work program. Indeed's Ready to Work program is a series of free virtual and in-person events for job seekers in several cities across the U.S. from September 15 to October 8, 2022. Pool and Spa drain covers imported to the United States by various companies have been recalled due to violation of the Virginia Graeme Baker Pool and Spa Safety Act, the U.S. Consumer Product Safety Commission announced. The various recalls include pool and spa drain covers manufactured in China and sold exclusively at Amazon.com for different prices ranging from $10 to $12.
Follow RTT