Monday, 16 September 2013

U.S. industrial production rose in August

Industrial output increased 0.4 percent last month after being flat in July, the Federal Reserve said on Monday. The rise was in line with economists' expectations.
Manufacturing production advanced 0.7 percent, reversing the prior month's 0.4 percent drop, as automobile assembly rebounded 5.2 percent after slumping 4.5 percent in July.
Factory activity hit a speed bump early in the year. The industrial production report pointed to some underlying momentum, which could support views of only a mild slowdown in economic growth this quarter.
Gains in industrial production were almost broad-based in August, though utilities output fell for a fifth consecutive month.
Mining production rose 0.3 percent last month, but that was a big step back from July's 2.4 percent increase.
Last month, the amount of industrial capacity in use edged up to 77.8 percent from 77.6 percent in July.

Industrial capacity utilization - a measure of how fully firms are using their resources - was 2.4 percentage points below its long-run average.

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