Industrial Production Unexpectedly Rebounds in June
U.S. industrial production unexpectedly rebounded in June by 0.5 percent, its biggest jump in nearly a year, as utility and mining output soared and manufacturing reversed two months of declines, the Federal Reserve said on Wednesday.
Economists polled by Reuters were expecting output at the nation's factories, utilities and mines to be flat in June after an unrevised 0.2 percent drop in May. June's rise was the largest since a 0.6 percent rise in July 2007.
For the second quarter of 2008, however, overall industrial production fell 3.1 percent, marking the largest quarterly drop since the fourth quarter of 2001, when it fell 5.2 percent. Output in the first quarter fell rose 0.5 percent.
Manufacturing output rose 0.2 percent in June after a 0.1 percent drop in May and a 0.9 percent fall in April, the Fed said. June motor vehicle and parts production rose 5.4 percent, offsetting declines for machinery and fabricated metal products.
Utility output rose 2.1 percent to cope with hotter summer weather, while mining output rose 1.1 percent.
Total industrial capacity rose in June to 79.9 percent from 79.6 percent in May.