After a decrease of 0.1%, industrial production rose 0.5% in June, the Federal Reserve reported on July 17. Total industrial production was 1.4% above last year's level.
Manufacturing output moved up 0.6% in June, excluding motor vehicles and parts.
"The 0.5% increase in industrial production and 0.6% gain in manufacturing production in June confirm a ratcheting up in the growth rate from meager to moderate growth for the industrial sector," said Daniel J. Meckstroth, chief economist for the Manufacturers Alliance/MAPI. "Although manufacturing is impacted by the housing market woes and competition from low cost country consumer goods, the industry has cleared up excessive inventories and is seeing strong growth in high-tech, aerospace and most other durable goods industries. The mid-cycle correction is over and manufacturing activity should remain a moderate pace in second half 2007."
Factory output increased 0.4% after having been unchanged in May. Mining gained 0.5% while utilities gained of 0.3%.
Capacity utilization for total industry moved up to 81.7% in June; the rate was below its level in June 2006 but above its 1972-2006 average.
