US Industrial Output Beats Expectations in June

For the second quarter this year, industrial output rose at an annual rate of 4.3%. 

U.S. industrial production cooled in June but still exceeded analyst expectations, with manufacturing and utilities output both rising, the Federal Reserve said Wednesday.

Total industrial output rose 0.6% from the prior month, down slightly from May's 0.9% reading, the report said.

Analysts expect that a slump in factory output that started in early 2022 appears to now be in the rearview mirror.

Among sectors, manufacturing output rose 0.4% in June, down from a 1.0% jump in May.

This was helped in part by the auto industry even as other sectors saw declines.

Mining gained 0.3%, while utilities increased 2.8%, with gains in both electric and natural gas, said the Fed.

For the second quarter this year, industrial output rose at an annual rate of 4.3%.

But analysts at Pantheon Macroeconomics cautioned in a recent note that it is unclear if the second quarter's growth rate can be sustained.

"Monetary policy is still very tight, growth in the rest of the world is anemic and most survey indicators are struggling to recover to the levels consistent with an expansion," Pantheon said.

"Accordingly, we think that the conditions for another manufacturing boom are not in place yet," its report added.

Written by: Agence France-Presse, for IndustryWeek.