Thursday, July 15, 2010

Industrial Production Up 0.1%, Manufacturing Down 0.4%

In June, industrial production rose by 0.1%. This is a significant deceleration from recent months, and the slowest rate of growth since February. Manufacturing output declined for the first time since February, falling by 0.4%. Manufacturing output was driven down by a 1.9% drop in auto manufacturing following a large jump of 5.2% in this sector in May. Non-durable goods manufacturing also fells significantly by 0.7%. Despite the drop in June, manufacturing output grew at an annual pace of 7.8% over the second quarter due to strong months of growth in May and April.

Mining output rose 0.4%, reversing a decline in May. Utilities output rose 2.7% after jumping 5.6% in May.

The capacity utilization rate remained flat at 74.1% after rising for 9 consecutive months. There still remains heavy productive slack; however, the utilization rate is considerable higher than its lows of last year. It will have to continue to increase in order to drive significant capital expenditures and payroll expansion.

10.07.15 (Source: Federal Reserve)

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