By Maria Martinez
U.S. industrial production rose in July driven by a jump in manufacturing output.
Industrial production--which includes factory, mining and utility output--increased at a seasonally adjusted 0.9% in July compared with June, according to data from the Federal Reserve released Tuesday. The reading beats forecasts from economists polled by The Wall Street Journal, who expected a 0.5% rise.
Industrial output rose 0.2% in June, down from the 0.4% previously estimated.
Manufacturing output--the biggest component of industrial production--jumped by 1.4% in July compared with the previous month, driven by a sharp 11.2% gain in motor vehicle and parts production as a number of vehicle manufacturers trimmed or canceled their typical July shutdowns.
Despite the large increase last month, vehicle assemblies continued to be constrained by a persistent shortage of semiconductors and the production of motor vehicles and parts in July was about 3.5% below its recent peak in January 2021, the report said.
Excluding motor vehicles and parts, factory output increased 0.7%, the Fed said. Gains of 1.5% or more were recorded by machinery, electrical equipment, appliances, and components; aerospace and miscellaneous transportation equipment; and miscellaneous manufacturing, the report said.
The index for utilities fell 2.1% in July, as an unusually hot June gave way to a July with temperatures somewhat below normal. Mining output rose 1.2%, the Fed said.
Industrial production in July was 6.6% above the same month a year earlier, but 0.2% below pre-pandemic levels.
Capacity utilization, which reflects how much industries are producing compared with what they could potentially produce, increased to 76.1% in July. Economists expected a 75.7% reading. Capacity utilization for manufacturing rose to 76.6%.
Write to Maria Martinez at maria.martinez@wsj.com
(END) Dow Jones Newswires
08-17-21 0955ET
