US industrial production jumps ahead in July
US industrial production continued expanding in July as increased energy and utilities output offset a decline in manufacturing.
Total output rose by 0.2% month-on-month following a 0.4% increase in the month before, according to the Federal Reserve.
Economists had penciled in growth of 0.3%.
Versus a year ago, production was 2.2% ahead.
By industry groups, factory production fell by 0.1% - dragged down by lower automobile production - but in Mining and Utilities it jumped by 0.5% and 1.6%, respectively.
"The decline in auto production likely reflects the reported longer-than-usual retooling this year as companies take steps to reduce elevated inventories to realign them with the sluggish pace of auto sales," said Mickey Levy and Roiana Reid at Berenberg Capital Markets.
From the perspective of major market groups, production of final products was unchanged from June with that of business equipment shrinking 0.5%.
In parallel, output of nonindustrial supplies edged higher by 0.2% despite a 0.4% drop in construction while that of materials wa up 0.3%.
"Importantly, the Philly Fed six-month ahead capital expenditures index (at 39.2 down from 42.0) – a good leading indicator of business fixed investment - remained very high.
"With real business fixed investment already growing at a solid pace, imagine how much better it would be without the constant wave of political uncertainties."