Industrial production (IP) rose 0.3% in June after remaining unchanged in April and May. For the second quarter as a whole, IP increased at an annual rate of 1.1%. In June, manufacturing output ticked up 0.1%, and the index for mining decreased 0.3%. The index for utilities rose 2.8%. At 104.0% of its 2017 average, total IP in June was 0.7% above its year-earlier level. Capacity utilization moved up to 77.6%, a rate that is 2.0 percentage points (pp) below its long-run (1972–2024) average.
The major market groups all posted gains in June. Consumer goods production increased 0.2%; among consumer goods, the production of durables fell 1.4% driven by a 3.2% decline in the index for automotive products. In contrast, nondurables posted a gain of 0.7% led by a 2.7% increase int eh index for energy nondurables. Output of materials rose 0.4% supported by a 0.9% gain in the index for energy materials. The indexes for construction supplies and business supplies grew 0.3% and 0.4%, respectively, while the index for business equipment edged up 0.1%.
Manufacturing output ticked up 0.1% in June and was 0.8% above its year-earlier level. During the second quarter, the index for manufacturing grew 2.1% at an annual rate. In June, the output of durable goods was unchanged. Within durables, the production of electrical equipment, appliances, and components fell 2.5%, and the production of motor vehicles and parts fell 2.6%. In contrast, the output of primary metals increased 3.1%, and the output of aerospace and miscellaneous transportation equipment rose 1.6%. Nondurable goods posted a gain of 0.3%, led by a 2.9% increase in the production of petroleum and coal products.
Mining output decreased 0.3% in June but expanded 5.7% at an annual rate in the second quarter as a whole. In June, the index for utilities increased 2.8%, with a 3.5% increase in electric utilities output more than offsetting a 2.6% decline in the output of natural gas utilities. In the second quarter, the index for utilities decreased 10.6% at an annual rate.
Capacity utilization for manufacturing inched up in June to 76.9%, a rate that is 1.3 pp below its long-run (1972–2024) average. The operating rate for mining decreased 0.3 pp to 90.6%, and the operating rate for utilities increased 1.7 pp to 70.1%. The rate for mining was 4.1 pp above its long-run average, while the rate for utilities remained substantially below its long-run average.
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