Industrial Output Rose in July

Washington, DC, Aug. 14, 2009--U.S. industrial output rose in July for the first time since October, the Federal Reserve reported Friday.

The seasonally adjusted output of the nation's factories, mines and utilities increased 0.5% last month, reversing course after a 0.4% decline in June. Output is down 13.1% in the past year.

It was only the second increase in industrial production since the recession began in December 2007. Since then, output has fallen 14.6%.

Industrial production is one of four monthly indicators used to judge whether the economy is growing or is in recession; the others are payrolls, incomes and business sales.

Economists were looking for a stronger increase of 0.7% in industrial output for July.

Capacity utilization increased to 68.5% from a record-low 68.1% in June. Within manufacturing alone, the utilization rate recovered to 65.4% from a record-low 64.7%.

Excluding autos, industrial output for July was off 0.1%.

Manufacturing output rose 1%, also the first increase since October and the largest increase since December 2006. Excluding autos, manufacturing output rose 0.2%.