Financial News: U.S. Industrial Production Rises 0.2% In July, Slightly

U.S. Industrial Production Rises 0.2% In July, Slightly Less Than Expected

(RTTNews) - While the Federal Reserve released a report on Tuesday showing industrial production in the U.S. rose by slightly less than expected in the month of July, the report also showed an upward revision to the increase seen in June.

The Fed said industrial production crept up by 0.2 percent in July after climbing by an upwardly revised 0.3 percent in June.

Economists had expected industrial production to increase by 0.3 percent compared to the 0.1 percent uptick originally reported for the previous month.

"Production grew slightly less than expected in July, but a decent upward revision to the prior month's reading leaves intact our call for industrial activity to strengthen and broaden out this year," said Bernard Yaros, Lead US Economist at Oxford Economics.

He added, "AI is increasingly spilling over into other investment goods beyond information processing equipment; aerospace is breaking out of a yearslong funk; and a restocking cycle will also lead to more broad-based growth in manufacturing."

The modest increase in industrial production came as utilities output climbed by 0.5 percent, while both mining and manufacturing output rose by 0.2 percent.

The report also said capacity utilization in the industrial sector ticked up to 76.3 percent in July from an upwardly revised 76.2 percent in June.

Economists had expected capacity utilization to rise to 76.3 percent from the 76.1 percent originally reported for the previous month.

Capacity utilization in the utilities sector rose to 70.0 percent, capacity utilization in the manufacturing sector crept up to 76.0 percent and capacity utilization in the mining sector inched up to 86.1 percent.

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