Industrial production, manufacturing fell in June

Industrial production fell by a half-percent in June but increased at an annual rate of 0.7 percent, according to the Federal Reserve. The index for manufacturing fell 0.3 percent but increased 1.5 percent in the second quarter of the year, according to the report. The indexes for mining and utilities fell 0.2 percent and 2.6 percent, respectively. 

The index for consumer durables dropped 2.7 percent, led by a 3.8 percent decline in the output of appliances, furniture and carpeting and a 3.6 percent fall in automotive products. The index for consumer nondurables fell nearly 1 percent amid a 2.1 percent fall in clothing, 1.8 percent decrease in energy and a 1.3 percent drop in food and tobacco.  

In business equipment, an increase in the index for information processing was offset by drops in the indexes for transit and for industrial and other categories. Defense and space equipment posted the only increase at 1.5 percent or more among the market groups. 

Factory output increased 1.5 percent at an annual clip, sparked by a 36.7 percent jump in the production of motor vehicles and parts. The indexes for nondurable and durable manufacturing fell 0.6 percent and 0.1 percent, respectively; the index for publishing and logging manufacturing dropped 0.2 percent. 

Total industrial production in June was at 102.2 percent of its 2017 average but 0.4 percent under its year-earlier mark. Industrial capacity utilization fell to 78.9 percent last month, 0.8 percentage point below its 50-year average. Manufacturing capacity utilization fell slightly to 78 percent, 0.2 percentage points below its 50-year average. The operating rate for mining is at 91.6 percent, 5.2 percentage points above its long-term average; while the rate for utilities dropped 2.1 percentage points to 68.5 percent, well under its historical average.