Industrial production increased in June

U.S. industrial production increased last month despite economic uncertainty, according to the Federal Reserve..Industrial production increased 0.3 percent in June, following flat readings in both April and May, according to the Federal Reserve. For the second quarter overall, industrial output grew at an annual rate of 1.1 percent.June’s increase was driven by a 2.8 percent increase in utility output as a heat wave across the country caused increased demand for air conditioning. At 104.0 percent of its 2017 average, total industrial production was 0.7 percent higher than in June 2024. Capacity utilization—a measure of how fully firms are using their resources — edged up to 77.6 percent, but remained 2.0 percentage points below its long-run average from 1972 to 2024.The manufacturing index increased 2.1 percent on an annualized rate in the second quarter of the year. Manufacturing output ticked up 0.1 percent in June, and was 0.8 percent higher than its year-earlier mark. Mining production declined by 0.3 percent but still increased 5.7 percent on an annualized rate in the second quarter.Manufacturing capacity utilization increased to 76.9 percent last month, which is still 1.3 percentage points under its 53-year average. The index tracking consumer goods production increased 0.2 percent. The production of durables dropped 1.4 percent, fueled by a 3.2 percent decline in the index for automotive products. Nondurables increased 0.7 percent, sparked by a 2.7 percent rise in the index for energy nondurables. The materials output index increased 0.4 percent, supported by a nearly 1 percent gain in the energy materials index. The indexes for business supplies and construction supplies increased 0.4 percent and 0.3 percent, respectively.