July 16, 2019
The latest U.S. manufacturing data from the Federal Reserve represented a mixed bag, with the Fed reporting that industrial production overall was unchanged in June, as increases for both manufacturing and mining offset a decline for utilities. For the second quarter as a whole, industrial production declined at an annual rate of 1.2%, following a 1.9% decline in Q1.
In June, manufacturing output advanced 0.4%, compared to 0.2% for May. Driving the June increase was a 2.9% gain for motor vehicles and parts. Without it, manufacturing output moved up only 0.2%, in line with analysts’ expectations. Conversely, utilities output fell 3.6%, as milder-than-usual temperatures in June reduced demand for air conditioning.
At 109.6% of its 2012 average, total industrial production was 1.3% higher in June than a year earlier. However, capacity utilization for the industrial sector decreased 0.2 percentage points to 77.9%, 1.9 percentage points below the long-term average.
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