Friday, August 15, 2014

Industrial Production Increased 0.4% in July

Industrial production improved 0.4% in July, the same growth seen during the previous month. Manufacturing and mining contributed to July’s growth, moderately offset by a decline in utilities.

Manufacturing growth improved 1.0% in July, led by a 10.1% jump in motor vehicle and parts. Manufacturing grew at the fastest pace since February. Manufacturing is the core component of industrial production and does not fluctuate like mining and utilities. As such, growth in manufacturing demonstrates that the core of industrial production is improving.

Mining production increased 0.3% in July, a slowing of the pace compared to the previous 4 months. Utilities production declined 3.4%, the biggest drop since April for the highly volatile index. The capacity utilization ratio improved in July, rising 1 basis point to 79.2%.

Read the Federal Reserve release.

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