Economy

Industrial Production Dipped in July, Revised Higher for June

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)

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%.

Indicator	Prior	Prior Revised	Consensus Forecast	Forecast Range	Actual
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 – Level	77.9%	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.

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PPD Business Staff

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.