Industrial, manufacturing production increased last month

Industrial production and manufacturing production each increased 0.2 percent last month amid strong business investment and demand for technological equipment fueled by artificial intelligence, according to the Federal Reserve. .The increase followed a 0.3 percent rise in June. The indexes for mining and for utilities increased 0.2 percent and 0.5 percent, respectively. Manufacturing output not including motor vehicles and parts increased 0.4 percent. Total industrial production was 1.1 percent higher than its year-earlier mark, and 103.0 percent of its 2017 average. Capacity utilization increased to 76.3 percent, 3.1 percentage points under its long-term average. Manufacturing output increased 0.2 percent last month amid business investment in high-tech equipment connected to AI and defense production. While the production of durable goods increased 0.7 percent, most categories grew more than 1 percent. Only the indexes for motor vehicles and parts fell in July, down 0.2 percent and 2.1 percent, respectively.Nondurable goods production dropped 0.4 percent, with increases in the output of petroleum and coal products along with textile and product mills more than offset by drops in other categories. Mining output increased 0.2 percent. Consumer goods production fell 0.4 percent, with the indexes for durable and nondurable consumer goods dropping 1.4 percent and 0.1 percent, respectively. Business equipment production increased 0.8 percent, with rises in the indexes for information processing and for industrial and other equipment more than making up for a loss in the index for transit equipment. “Major market groups posted mixed results in July,” according to the Federal Reserve. Defense and space equipment output increased 1.8 percent amid increased pressure to more quickly produce weapons and munitions for the war in Iran. The construction supplies index rose 0.8 percent, while business supplies production remained the same. The materials index increased 0.3 percent. The utilities index increased 0.5 percent, with similar rises in the indexes for natural gas and electric utilities. Manufacturing capacity utilization increased to 76.0 percent in July, 2.2 percentage points under its long-term average. The mining operating rate slightly increased to 86.1 percent, nearly a full percentage point under its long-term average, and the utilities operating rate rose 0.2 of a percentage point to 70.0 percent, well under its long-term average.