WASHINGTON, July 14 — US industrial output rose for the fifth straight month in June on the continued rise in oil and gas drilling and coal mining and a slight rebound in manufacturing, the Federal Reserve reported today.
Overall industrial production rose 0.4 per cent last month, and output for May posted a 0.1 per cent increase, better than initially reported, as manufacturing retraced half of the 0.4 per cent drop in May, according to the data.
The key manufacturing sector, which represents more than 70 per cent of the Industrial Production index, is up 1.2 per cent compared to June 2016, although it slowed in the second quarter, the report said.
But the mining sector showed the biggest change, jumping 1.6 per cent last month compared to May, when it increased 1.9 percent. The sector has risen 9.9 per cent from the same period of last year. However, it remains 9 per cent below the December 2014 peak, the Fed said.
Oil and gas well drilling jumped 6.8 per cent in the month, and is up 108.2 per cent compared to June 2016 even after a slight slowdown in the rate of increase in May.
Output for utilities remained was flat in June compared to the prior month as a decrease for gas utilities was only slightly offset by an increase for electric utilities. The sector has seen production decline 2.2 per cent year-over-year.
In the manufacturing sector, big-ticket items like cars and appliances, known as durable goods, increased 0.4 per cent. The Fed said “nearly all major industry groups within durables posted gains,” including a 1 per cent increase in automotive products.
The share of industrial capacity in use in the month was 76.6 per cent, up slightly from May, but for manufacturing it was 75.4 per cent, “three percentage points below its long-run average,” the report said. — AFP
Source: The Malay Mail OnlineNo tags for this post.