June Industrial Production Rose 0.6%, Following May Decline

Washington, DC, July 15, 2016—Industrial production increased 0.6% in June after declining 0.3% in May, according to the Federal Reserve.

For the second quarter as a whole, industrial production fell at an annual rate of 1.0%, its third consecutive quarterly decline. Manufacturing output moved up 0.4% in June, a gain largely due to an increase in motor vehicle assemblies. The output of manufactured goods other than motor vehicles and parts was unchanged.

The index for utilities rose 2.4% as a result of warmer weather than is typical for June boosting demand for air conditioning. The output of mining moved up 0.2% for its second consecutive small monthly increase following eight straight months of decline.

At 104.1% of its 2012 average, total industrial production in June was 0.7% lower than its year-earlier level. Capacity utilization for the industrial sector increased 0.5 percentage point in June to 75.4%, a rate that is 4.6 percentage points below its long-run (1972–2015) average.