Industrial production rose 1.0% in July after declining in the previous two months, according to the Federal Reserve. June’s reading was revised downward to -0.8% while the readings for previous months remained largely unchanged. Total industrial production in July was 0.2% below its year-ago level. Capacity utilization increased 1.6 percentage points (pp) to 79.3% but remains 0.4 pp below its long run (1972-2022) average.
Manufacturing output increased 0.5% in July after a 0.5% decline in June. The increase was largely driven by a 5.2% increase in production of motor vehicles and parts. Production of durable goods increased 0.8%, while nondurable goods production edged up 0.1%. Capacity utilization for manufacturing rose 1.2 pp to 77.8%, 0.4 pp below its long-run average.
Mining output increased 0.5% after a 0.9% decline in June. The index in July was 2.0% higher than its year-earlier level.
Utilities increased 5.4%, bolstered by a 6.7% jump for electric utilities as record-high heat in July increased demand for air conditioning. However, the index remains down 0.9% year-over-year.
Read the Fed release.