Industrial Production in the U.S. increased a seasonally adjusted 0.4 percent in June after a 0.2 percent dip in May, the Federal Reserve said Tuesday, led by gains among automobile and machinery makers that suggests some resilience in the manufacturing sector.
Economists polled by Reuters had called for a 0.3 percent growth in June. Output at factories, mines and utilities in May was revised lower from an initially reported 0.1 percent drop.
Manufacturing, which makes up about 75 percent of total production, rose 0.7 percent in June, reversing the prior month's decline. Utility production dropped 1.9 percent last month after jumping 2.8 percent in May. Mining output increased 0.7 percent after being unchanged the prior month.
The latest survey evidence also suggests that output will remain stagnant or even contract a little over the next few months, Capital Economics chief U.S. economist Paul Ashworth said in a note to clients. The manufacturing sector is clearly being hit by the industrial slowdowns in Europe and Asia, but, for now at least, the U.S. doesn't appear to be following Europe into recession.