Industrial production rose 0.6% in June after advancing 0.9% in May according to the Federal Reserve. The indexes for mining and utilities posted gains of 0.3% and 2.8%, respectively. Total industrial production in June was 1.6% above its year-earlier level at 104% of its 2017 average. Capacity utilization moved up to 78.8% in June, a rate that is 0.9 pp (percentage point) below its long run (1972-2023) average.
Most major market groups posted gains in June. The index for consumer goods stepped up 1% with increases in the indexes for most of its components—particularly energy (2.7%) and automotive products (1.7%). Business equipment and construction supplies were the only major market groups to experience declines, with their respective indexes decreasing 0.4% and 0.1%.
Manufacturing output increased 0.4% in June and was 1.1% above its year-earlier level. The index for durable manufacturing was unchanged while the index for nondurable manufacturing increased 0.8%. The index for other manufacturing (publishing and logging) increased 0.9%. Within durables, declines in the indexes for industries such as fabricated metal products (1.3%) and miscellaneous (1.7%) were offset by increases in the indexes for industries such as motor vehicles and parts (1.6%) and electrical equipment, appliances, and components (1.5%). Within nondurables, all industry groups except plastics and rubber products posted gains, with the largest gain seen in the output of printing and support (2.6%).
Mining output increased 0.3% in June but was 0.6% below its year-earlier level. The output of utilities increased 2.8% in June, with gains in the output of both electric and natural gas utilities.
Capacity utilization for manufacturing moved up in June to 77.9%, a rate that is 0.4 pp below its long-run average. The operating rate for mining rose 0.3 pp in June to 89.3%., 2.8 pp above its long-run average. On the other hand, the operating rate for utilities increased 1.8 pp to 73.9%, substantially below its long-run average.
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