–Retransmitting Story Headlined 9:15 ET Tuesday
–Auto Production Rebounded After Japan Related Disruptions Fade
By Denny Gulino
WASHINGTON (MNI) – U.S. industrial production surged 0.9% above
expectations in July, the most since December, as the heat wave boosted
air conditioning use and auto plant production increased, the Federal
Reserve reported Tuesday. In addition, May and June were revised upward.
Capacity utilization jumped six tenths to 77.5, its highest reading
in three years and 2.2 points above a year earlier. But it remains 2.9
points below its nearly 40-year average.
Capacity utilization for manufacturing was at 75.0%, up four tenths
to a rate 10.6 poitns above its June 2009 trough, “but still 4.0 points
below its long-run average,” the report said.
Manufacturing output rose 0.6%, matching the revised March
increase and is up 3.8% over a year. The index for motor vehicles and
parts jumped 5.2%.
Utilities output increased 2.8% “as the extreme heat during the
month boosted air conditioning usage,” the report said.
Nondurables consumer goods output rose 0.5%.
Overall industrial production is now up 3.7% in a year and some
subcategories are showing impressive increases, like business equipment,
up 8.5%. Mining, including oil output, is up 6.6%.
“All of the major components of business equipment are
substantially above their levels of a year earlier,” the report said.
Consumer goods production was up 1.1% that was only 1.3% above its
year earlier level. Consumer durables, however, were up 3.6% and
automotive products jumped 5.9%. “Motor vehicle ouptut rebounded after
the supply chain disruptions that resulted from the earthquake in
Japan,” the report said.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,M$U$$$]