Industrial production rebounded to rise slightly ahead of forecasts in June, and factory output was unchanged for a second straight month.
According to the Federal Reserve, industrial production climbed 0.3%. Capacity utilization came in at 78.4%, also beating expectations.
According to Bloomberg, economists had forecast that industrial production rose 0.2% month-over-month, up from a drop of 0.2% in May, and capacity utilization was unchanged from 78.1% last month.
In a note to clients after the release, Capital Economics’ Steve Murphy wrote, “Overall, industrial production was encouraging, and suggests that mining, which had been extremely weak so far this year may be turning the corner. Manufacturing activity still remains muted but did look a little less weak, at least if we ignore the temporary dip in motor vehicle production.”
“Furthermore, manufacturing and mining account for no more than 15% of the economy and, with non-manufacturing activity having remained strong so far this year, we expect that GDP growth for the remainder of the year will average between 2.5% and 3% annualized.”