Industrial production increased in August on vehicle gains

U.S. industrial production rose 0.1 percent in August, rebounding slightly after a 0.4 percent drop in July, according to Federal Reserve data released Wednesday..At 103.9 percent of its 2017 average, overall industrial production stood 0.9 percent higher than a year earlier. Capacity utilization held steady at 77.4 percent, still 2.2 percentage points below its long-run average.Manufacturing output increased 0.2 percent, led by a 2.6 percent rise in motor vehicles and parts. Factory output outside of autos ticked up 0.1 percent. Manufacturing capacity utilization inched up to 76.8 percent, mining rose to 90.6 percent, and utilities slipped to 68.6 percent. Mining activity climbed 0.9 percent in August, while utility output fell 2 percent amid weaker demand for electricity.By market groups, consumer durables advanced 0.6 percent on stronger automotive products, and consumer nondurables gained 0.3 percent amid increases in textiles, petroleum and chemicals. Construction supplies also rose 0.6 percent, while business supplies fell 0.4 percent. Business equipment edged down 0.1 percent as a decrease in industrial machinery outweighed increases in transit and information processing equipment.Within industry groups, durable manufacturing rose 0.2 percent, with autos offsetting declines in fabricated metals and machinery. Mining’s 0.9 percent increase marked a recovery from July’s drop, while utilities continued to lag, with output down 2 percent.