U.S. industrial production rose 0.3% in June, supported by a jump in utilities output and steady gains in manufacturing outside the motor vehicle sector, according to data released Wednesday by the Federal Reserve.
Manufacturing output increased 0.1% in June after rising 0.3% in May. On a year-over-year basis, factory production climbed 0.8%.
For the second quarter, manufacturing grew at a 2.1% annualized pace, slowing from 3.7% in the first quarter.
The increase in June was led by a 2.9% rise in petroleum and coal products. Aerospace and other transportation equipment production climbed 1.6%, and output of primary metals gained 3.1%. But motor vehicle and parts production dropped 2.6%, following a 4.6% rise in May.
Durable goods manufacturing was flat in June, while nondurable goods output rose 0.3%.
Overall industrial production, which includes manufacturing, mining, and utilities, was up 0.3% in June after being flat for two months. On a yearly basis, it increased 0.7%.
For the second quarter, it rose at a 1.1% rate, down from 4.3% in the first quarter.
Utilities output increased 2.8% in June after falling 2.5% in May, driven by high electricity demand during a heat wave. Mining output fell 0.3%, reversing a 0.1% gain in the prior month.
Capacity utilization in the industrial sector edged up to 77.6% from 77.5% in May, remaining 2.0 percentage points below its long-term average. The manufacturing sector’s operating rate rose slightly to 76.9%, which is 1.3 percentage points below its long-run average.
Trade tensions continued to affect the manufacturing outlook. President Donald Trump’s tariffs, including a 50% duty on steel and aluminum and a 25% tax on motor vehicles and parts, remain in effect.
Last week, Trump announced additional duties beginning August 1 on imports from Mexico, Japan, Canada, Brazil, and the European Union.
