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Saturday, August 17, 2019
HomeNewsEconomyIndustrial Production Flat in June, Utilities Offset Manufacturing and Mining

Industrial Production Flat in June, Utilities Offset Manufacturing and Mining

Industry production 4.0 and technology concept, depicting factory production on a conveyor belt with factory operational workers in uniform. (Photo: AdobeStock)
Industry production 4.0 and technology concept, depicting factory production on a conveyor belt with factory operational workers in uniform. (Photo: AdobeStock)
Industry production 4.0 and technology concept, depicting factory production on a conveyor belt with factory operational workers in uniform. (Photo: AdobeStock)

Industrial production was unchanged in June after gaining stronger than expected in May, as gains in manufacturing and mining offset declines in utilities. Last month, utilities drove the increase.

IndicatorPriorConsensus ForecastForecast RangeResult
Production – M/M ∆0.4%0.1%-0.1% to 0.4%0.0%
Manufacturing – M/M ∆0.2%0.2%0.1% to 0.4%0.4%
Capacity Utilization Rate78.1%78.2%77.8% to 78.3%77.9%

Manufacturing output rose 0.4%, driven significantly by an increase of nearly 3% for motor vehicles and parts. Excluding motor vehicles and parts, manufacturing output was up 0.2%.

The output of utilities declined 3.6%, which the Federal Reserve attributed to milder-than-usual temperatures for June reducing the demand for air conditioning.

The index for mining gained 0.2%.

At 109.6% of its 2012 average, total industrial production was 1.3% higher in June than it was a year earlier. Capacity utilization for the industrial sector decreased 0.2% in June to 77.9%, a rate that is 1.9 percentage points below its long-run (1972–2018) average and less than the consensus forecast.

Written by
Staff Writing Group

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