Industrial Output Rose Last Month As Auto Production Surged

By Christian Robles

U.S. industrial output increased in July as auto manufacturing and energy production surged.

Industrial production, which measures manufacturing, mining and utilities output, rose 1% in July from the prior month, the Federal Reserve said Wednesday, reversing declines in May and June.

Manufacturing output, the majority of industrial production, increased 0.5% last month, also following declines in the two prior months. Motor vehicle and parts production jumped in July, the Fed said.

Utilities output increased 5.4% in July as hot weather raised energy demand, the Fed added.

On a 12-month basis, overall industrial production fell 0.2% and manufacturing production was down 0.7%. Manufacturing output has fluctuated as the Federal Reserve increased interest rates to slow the economy and bring down inflation.

Capacity utilization, which reflects how much industries are producing relative to what they could potentially produce, edged up to 79.3% in July, from a revised 78.6% the prior month, the Fed said.

Write to Christian Robles at christian.robles@wsj.com

(END) Dow Jones Newswires

August 16, 2023 09:48 ET (13:48 GMT)

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