Getty Images
Industryweek 9118 Manufacturing Plant Auto

US Industrial Output Rebounds in June

July 15, 2015
The June pick-up in overall industrial production was driven by utilities, such as water and electricity, which rose 1.2%, and mining, up 1.0%.

WASHINGTON--U.S. industrial production rose for the first time in three months in June on the back of higher utility output, but manufacturing remained flat, the Federal Reserve reported Wednesday. 

Industrial output increased 0.3% in June, after declines of 0.2 percent and 0.5 percent in May and April, respectively.

The June pick-up in overall industrial production was driven by utilities, such as water and electricity, which rose 1.2%, and mining, up 1.0%.

Manufacturing, accounting for about three quarters of total industrial output, has been under pressure from tepid consumer spending and a stronger dollar weighing on exports. It was unchanged for a second straight month in June.

"The industrial production gains in June were the result of changes in prices and unusual temperature trends, not a change in demand for US manufacturing goods," said Briefing.com in a research note.

Barclays analyst Jesse Hurwitz highlighted that with the June data, the second-quarter growth rate of total industrial output fell 1.4%, following a 0.1% gain in the first quarter, in the first quarterly contraction since the recession ended in June 2009.

"We continue to view this downturn as driven by the impact of a stronger dollar and cutbacks in the energy sector from the decline in oil (prices)," Hurwitz said in a client note.

"Looking ahead, we expect output for the sector to stabilize, but do not see a robust expansion as likely over the next few months."

Copyright Agence France-Presse, 2015

Continue Reading

Popular Sponsored Recommendations

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Your Industry 4.0 Journey

Sept. 24, 2023
When It Comes to Industry 4.0, the Journey is the Destination. Industry 4.0 must be embraced as a long-term, strategic mindset of digital transformation that dynamically alters...

Turning Your Frontline Workforce into a Competitive Advantage: A Comprehensive Guide

Sept. 19, 2023
In this guide, we'll explore how manufacturers are using digital technologies to preserve the bottom line and maintain growth by enabling and empowering their #1 asset - their...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!