The Federal Reserve said that industrial production rose 0.4% in June, ahead of analysts expectations, although May production was revised down to a drop of 0.2%. Auto production rose 1.9% and machinery output jumped 2.2%. Defense and space equipment output fell 0.6% and construction output fell 0.3%.
The numbers add to a muddled picture of industrial production in the U.S.; the Institute of Supply Management released a report earlier this month indicating that production contracted in June for the first time since 2009.
Stocks are posting solid gains, after falling for seven of the past eight sessions. The Dow was recently up 40 points.
John Ryding of RDQ Economics wrote “This report and yesterday�s Empire State survey suggest that manufacturing activity continues to expand and they stand in contrast to the weak ISM report for June.”
T. Rowe Price’s Alan Levenson added: “We view this recent performance as a mid-cycle consolidation. Having recovered to a pace that can sustain desired inventory levels in the current muted demand environment, growth in manufacturing output will downshift to that of the broader economy.”
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