Washington, DC, August 16, 2006--Industrial production rose by 0.4% in July, down from 0.8% in June, according to a report from the Federal Reserve.
Overall capacity utilization rose slightly, to 82.4% from 82.3% in June.
Economists were expecting overall industrial production to rise 0.8%.
Unseasonably hot weather forced utilities to more than double their output in July, as power plants ran at higher capacities to keep up with demand for electricity to cool homes and businesses.
Production at utilities rose by 2% compared to 0.9% in June, while capacity utilization at utilities climbed by 88.2%, up from 86.5% in June. Most of the demand was for electricity.
Output at factories rose by 0.1% in July, compared to 0.8% in June.
Manufacturing capacity utilization declined slightly, standing at 81.0% in July versus 81.1% in June.
Automobile production fell by 5.4% in July, after rising by 3% in June. Output of automotive products fell by 6.2% after posting a 4.2% gain in June.
Computer and electronic product output rose by 0.8% after climbing 1.8% in June.
Industrial production is up 4.9% in the past year. Capacity has grown by 1.9% in the past year.
Production of consumer goods fell by 0.3% in July, while production of business equipment rose by 1.1%.
Output of machinery rose 2.1%, more than five times what it did in June, and output of construction materials rose by 0.5% in July after climbing 0.1% in June.
