U.S. industrial output flat in June

The Federal Reserve reported on Tuesday that the U.S. industrial production was unchanged m-o-m in June, following an unrevised 0.4 percent m-o-m increase in May.

Economists had forecast industrial production would increase 0.1 percent m-o-m in June.

According to the report, the manufacturing output advanced 0.4 percent m-o-m in June, helped by a significant increase in production of motor vehicles and part (+3 percent m-o-m). Excluding motor vehicles and parts, manufacturing output rose only 0.2 percent m-o-m. Meanwhile, the output of utilities plunged 3.6 percent m-o-m, as milder-than-usual temperatures in June reduced the demand for air conditioning. The mining production moved up 0.2 percent m-o-m.

Capacity utilization for the industrial sector decreased 0.2 percentage point m-o-m in June to 77.9 percent. That was 0.2 percentage point below economists’ forecast and 1.9 percentage points below its long-run (1972-2018) average.

In y-o-y terms, the industrial output rose 1.3 percent in June, following a revised 2.1 percent advance in the prior month (originally a gain of 2.0 percent).

For the second quarter as a whole, industrial production reduced at an annual rate of 1.2 percent, its second consecutive quarterly decrease.