Economic Watch: Industrial Production Rises in August
Industrial production in the United States has posted its biggest increase in six months, according to the U.S. Federal Reserve.
Industrial production in the United States has posted its biggest increase in six months, according to the U.S. Federal Reserve.
The 0.4% increase in August from the month before follows it being unchanged in July, with the Federal Reserve calling the hike “broadly based.”
Following a decrease in July of 0.4%, which was steeper than previously reported, manufacturing production rose 0.7% in August. The output of mines moved up 0.3%, its fifth consecutive monthly increase and the production of utilities fell 1.5%, its fifth consecutive monthly decrease.
At 99.4% of its 2007 average, total industrial production in August was 2.7% above its year-earlier level. Capacity utilization for the industrial sector increased 0.2% in August to 77.8%, a rate 0.6% points above its level of a year earlier.
This follows a report from the Institute of Supply Management, earlier this month, indicating U.S. manufacturing was increasing at its best pace in more than two years.
Manufacturing accounts for less than 20% of total U.S. economic activity, but its performance is regarded as an indication of overall economic health, according to the Wall Street Journal.
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