Industrial production edged up 0.1% in June and grew at an annual rate of 4% in the second quarter. In June, manufacturing output was unchanged, and the index for mining and utilities both rose 0.4%. Manufacturing output excluding motor vehicles and parts edged down 0.1%. At 102.6% of its 2017 average, total industrial production in June was 1.1% above its year-earlier level. Capacity utilization was unchanged at 76.1%, a rate that is 3.3% percentage points (pp) below its long-run (1972–2025) average.
The major market groups posted mixed results in June. The production of consumer goods rose 0.3%, reflecting increases in the indexes for both durable and nondurable goods. The index for business equipment fell 0.4%, with declines in the indexes for information processing and for industrial and other equipment more than offsetting an increase in the index for transit equipment. The output of defense and space equipment edged up 0.2%, while the output of construction supplies fell 0.4%, the output of business supplies was unchanged, and the index for materials ticked up 0.1%.
Manufacturing output was unchanged in June, with an edging down of 0.1% in the index for durable manufacturing offsetting an increase of 0.2% in the index for nondurable manufacturing. The production of durables decreased 0.2% in June, with more industry groups posting losses than gains. The indexes for wood products, for nonmetallic mineral products, for machinery, and for electrical equipment, appliances, and components each declined more than 0.5%. Nondurable manufacturing production edged up 0.2%, led by a 2.1% increase in the production of petroleum and coal products.
Mining output grew 0.4% in June after moving up in both April and May. The output of utilities rose 0.4% in June, with an increase in the index for electric utilities more than offsetting a drop in the index for natural gas utilities.
Capacity utilization for manufacturing edged down 0.1 pp in June, to 75.7%, which is 2.5 pp below its long-run (1972–2025) average. The operating rate for mining rose 0.4 pp to 87.4%, and the operating rate for utilities edged up 0.2 pp to 69.5%. The utilization rates for mining was 2.2 pp above its long-run average, while the rate for utilities remained substantially below its long-run average.
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