U.S. Industrial Production increased in June following a flat May, while factory output likewise ticked up after a May increase.

The Federal Reserve’s latest Industrial Production and Capacity Utilization report, issued on July 16, showed total industrial production increased 0.3% in June month-over-month.

Economists polled by national media outlets forecasted a 0.1% gain in June.

May’s monthly figure was revised up to flat from an initial estimate of a 0.2% decline.

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Total June production was impacted by an increase in utilities output of 2.8% and manufacturing of 0.1%, partially offset by a decline in mining of 0.3%. The utilities increase followed a 2.9% decline in May.

At 104.0% of its 2017 average, total industrial production increased 0.7% year-over-year. Capacity utilization moved up to 77.6%, which was two percentage points below its long-run (1972-2024) average.

U.S. Total Industrial Production Index – Month-Over-Month

source: tradingeconomics.com

Market Groups

Major market groups all posted gains in June. Among the index for consumer goods (+0.2%), the production of durables declined 1.4%, driven predominantly by a decline of 3.2% in the index for automotives. Nondurables posted an increase of 0.7% led by a jump in the index for energy nondurables of 2.7%.

Business supplies and construction supplies increased 0.4% and 0.3%, respectively, while the index for business equipment increased slightly by 0.1%.

Industry Groups

Within June’s 0.1% increase in manufacturing output, the index for manufacturing increased 2.1% year-over-year, while output of durable goods was unchanged. Within durable goods, the production of electrical equipment, appliances and components decline 2.5%, while the production of motor vehicles fell 2.6%.

Mining output decreased 0.3% in June month-over-month, while utilities increased 2.8%, as an increase in electrical utilities output of 3.5% more than offset a 2.6% decline in the output of natural gas utilities.