Industrial production in the U.S. rose by more than anticipated in the month of July.
Source: The Federal Reserve
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The Fed stated that the industrial production increased by 0.9 percent in July after increasing up by a downwardly revised 0.2% in June.
Economists had expected industrial production to increase by 0.4%, aligning with the increase initially reported for the previous month.
Manufacturing output rose by 1.4% in July after slowing down by 0.3% in June, revealing an 11.2% increase in the production of motor vehicles and parts.
Fed further stated that a number of vehicle manufacturers cut or canceled their normal July but noted that vehicle assemblies continued to be restricted by a persistent shortage of semiconductors.
Mining output also rose by 1.2% in July after climbing by 0.5% in June, while utilities output dropped by 2.1% after increasing by 3.1% in the previous month. Rising demand, business investment, and strengthening global growth will retain industrial production on an expansionary path.