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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.
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.
Despite these gains, some sectors such as mining and business equipment faced minor setbacks. Mining output only slightly increased by 0.3% and remains 0.6% lower than the previous year, whereas business equipment production dipped by 0.4%.
The continued growth in consumer goods and materials also supports a stable economic environment. The consumer goods index rose by 1.0% in June, with significant increases in energy products and automotive products. Meanwhile, the materials sector benefited from gains across both its energy and non-energy components.
Overall, the Federal Reserve's latest report underscores a positive trajectory for the U.S. industrial sector, reinforcing optimism about the country's economic stability and recovery pace.
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