Industrial production numbers are good news for manufacturing sector
Industrial production in the United States climbed in July by the most this year as carmakers started to shake off the effects of the disaster in Japan, Bloomberg reported.
The 0.9 percent increase in production at factories, mines and utilities followed a revised 0.4 percent gain that was more than previously estimated, according to figures from the Federal Reserve. Economists had projected a 0.5 percent rise in July.
Factory output rose by the most in four months.
Production of business equipment picked up, showing gains in the industry that suggested that the recovery may be sustained even as manufacturers contend with a slowdown in consumer spending and exports. Factories also have kept a tight hold on inventories, limiting the need for large-scale cutbacks that could trigger an economic slump.
“As soon as we see demand pick up, we should see manufacturing turn the corner pretty quickly,” said Aaron Smith, a senior economist at Moody’s Analytics Inc., in an interview with Bloomberg.
Manufacturing output increased 0.6 percent, led by gains at the nation’s automakers, the report showed.