Industrial production in the United States managed to increase in July, but still turned in its weakest performance since April.

Figures released Thursday by the Federal Reserve show a 0.2% increase for the month in the total output of goods and services, led mainly by an increase in motor vehicles and parts, up 4.2%, and semiconductors, up 1.1%. Excluding that output, industrial production for July edged up only 0.1%, while production of non-durable goods fell by 0.5%. The overall July figure compares to a revised overall increase of 0.7% in June.
The small economy-wide gains in inventories in May and June, when inventories are still a little high relative to sales, appears to have prompted manufacturers to schedule steady or slightly reduced production in July, according to Newport Communication Senior Economist Jim Haughey.
“This is part of the process of adjusting to average economic growth rates after the tax cut boosted surge last winter,” he said. “Production may be steady or down slightly for the rest of the summer, but this is not a long-term trend. Continued gains in consumer spending, business investment and exports will bring monthly production growth up to a 0.3% average in the fall.”