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Sunday, September 15, 2019
HomeNewsEconomyIndustrial Production Dipped in July, Revised Higher for June

Industrial Production Dipped in July, Revised Higher for June

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

Decline in Manufacturing and Mining Offset Jump in Utilities

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)

The Federal Reserve said industrial production dipped slightly in July, as manufacturing offset a jump in utilities to miss the forecast. Industrial production, which has fallen more than 1.5% since December 2018, was revised higher for June from flat to 0.2%.

IndicatorPriorPrior RevisedConsensus ForecastForecast RangeActual
Production – M/M ∆0.0%0.2%0.1%-0.4% to 0.4%-0.2%
Manufacturing – M/M ∆0.4%0.6%-0.1%-0.3% to 0.1%-0.4%
Capacity Utilization Rate – Level77.9%77.8%77.8%77.7% to 78.2%77.5%

In July, mining output declined sharply 1.8%, though it is expected to be temporary due to Hurricane Barry. The storm hurt oil extraction in the Gulf of Mexico. The index for utilities, which is impacted by weather, increased 3.1%.

At 109.2 percent of its 2012 average, total industrial production was 0.5% higher in July than it was a year earlier.

Capacity utilization for the industrial sector fell 0.3% in July to 77.5%, a rate that is 2.3% below its long-run (1972–2018) average.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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