FX.co ★ US Industrial Output Rises More than Expected

In June, industrial production in the United States experienced a 0.3% rise, surpassing the market's forecast of a 0.1% increase, following two stagnant months in April and May. Manufacturing, comprising about 78% of the total industrial production, saw a modest increase of 0.1%, slightly outperforming predictions of no change. Utilities experienced a notable resurgence, with a 2.8% growth. This upturn was driven by a 3.5% increase in electricity generation, which balanced a 2.6% decline in natural gas production. On the other hand, the mining sector experienced a reduction of 0.3%. Capacity utilization improved to 77.6%, although it remains 2 percentage points shy of its long-term average of 79.6% from 1972 to 2024. Overall, industrial production in the second quarter grew at an annualized rate of 1.1%.