The US manufacturing industry has shown growth beyond initial projections in July, according to a Reuters report citing the US Federal Reserve.
The Federal Reserve System published the Industrial Production and Capacity Utilization Tuesday, showing an output uptick of 0.7 per cent after the industry saw a 0.4 per cent production decline in each of the two previous months.
The latest result is a 3.2 per cent increase compared to that of July 2021.
Economists polled by Reuters previously forecasted that factory production would rise 0.2 per cent.
Motor vehicles and parts posted the largest gain within durable manufacturing, reporting a 6.6 per cent increase, while fabricated metal products, aerospace, and miscellaneous transportation equipment and miscellaneous manufacturing all recorded gains of more than 1 per cent.
Durable consumer goods advanced 3.5 per cent, which the Federal Reserve attributed to a gain of 6.5 points for automotive products that outweighed losses for appliances, furniture, and carpeting (2.6 per cent) and home electronics (0.9 per cent).
Production of business equipment, construction supplies, and business supplies increased by less than 1 per cent, while defence and space equipment manufacturing surged by 1.5 per cent.
The output of non-energy materials rose 0.8 per cent— pushed by the 3.7 per cent expansion of durable consumer parts production.
Additionally, mining production increased by 0.7 per cent, continuing to be underpinned by oil and gas extraction, while the surge in manufacturing and mining output helped to lift overall production by 0.6 per cent.
Overall capacity use for the industrial sector skyrocketed to 80.3 per cent in July, compared to June’s 79.9 per cent result.
