Industrial production is growing – NAM

Industrial production rose significantly in June for the second month in a row (Bloomberg).

What’s going on: “The 0.6% increase in output at factories, mines and utilities followed a revised 0.9% gain a month earlier, marking the biggest two-month gain since late 2021, Federal Reserve data showed on Wednesday.”

• The median estimate in a Bloomberg survey was for a 0.3% increase.

Details: Industrial production rose by 0.4%, mainly in the automotive, household appliances, nondurable goods and electrical equipment sectors.

• Mining and energy production increased by 0.3%, and utility services production also increased.
• Factory capacity utilization, a measure of potential output, rose to 77.9%, a nine-month high.

Consumer goods: Production of consumer goods rose 1%, the highest increase in almost a year.

• Motor vehicle sales rose year-on-year to 13.4 million, the highest in almost nine years.

What does it mean: The June report “indicates that industrial production may be starting to regain balance.”