U.S. Industrial Production Climbs in June, Signaling Economic Stability

Industrial production in the United States increased by 0.6% in June, following a 0.9% rise in May, marking a continuation of the country's economic resilience, the U.S. Federal Reserve reports. This trend is highlighted by the substantial growth in the manufacturing and utilities sectors, which both saw gains that contributed to a positive outlook for the remainder of the year.

The Federal Reserve reported that for the second quarter of 2024, industrial production expanded at an annual rate of 4.3%, with manufacturing output increasing by 0.4% in June. The utilities sector experienced a significant rise, with a 2.8% increase in output during the same period, driven by both electric and natural gas utilities. These positive developments have led to a year-over-year growth of 1.6% in total industrial production compared to June 2023.

Recovery in capacity utilization

The report also indicates a noteworthy recovery in the capacity utilization rate, which reached 78.8% in June, nearing the long-term average. This measure of how fully firms are using their resources reflects broader economic recovery, particularly in the utilities sector, which saw a capacity utilization surge to 73.8%, a notable increase from previous levels.