Industrial production in the United States increased 0.6% in July, after rising just 0.1% in May and June, according to data released Wednesday by the Federal Reserve.
Manufacturing output rose 0.5%, mining output rose 1.2% and utilities output rose 1.3%, according to the Federal Reserve data.
The production of consumer goods increased 0.6% in July after decreasing 0.4% in June, the data shows. The output of durable consumer goods rose 1.5% in July, which included a 1.9% increase in the automotive production. Auto production in July was 15.5% higher than the year-earlier period.
The increased industrial output may ease fears that the economy is heading back into recession.
"There are strong trends in the auto industry and a number of other sectors which will keep industrial production from dipping into the negative this year," Guy LeBas, a fixed income strategist with Janney Montgomery Scott LLC, told Bloomberg prior to the report's release.
Nevertheless, data still shows manufacturers are concerned about future business, due to concerns about America's political gridlock and Europe's debt woes. More manufacturers in the state of New York said they planned to scale back hiring and capital projects compared to moving faster, according to August's Empire State Manufacturing Survey. Many of the manufacturers cited "increased uncertainty about business prospects" when making these decisions.
Filed under: 24/7 Wall St. Wire, Economy, Industry