·
For July, industrial production rose 0.2% after an unrevised 0.5% gain
during June. Consensus expectations had been for no change in output
last month.
· Utility output reversed its June increase and fell by 1.8% as the summer heat moderated.
· Factory output increased 0.4% which was its best monthly increase since last September. In addition, the three-month rate change improved to 2.2% (AR) which was its best since since last September. Output of motor vehicles & parts was strong during the last two months and rose 3.6% (-10.4% y/y) after a 4.8% June increase. The strike was settled at American Axel company.
· The trend in output outside the
high-tech sector has been decidedly weak due to that strike. Less
high-tech, factory output did repeat its June rise of 0.2% and
three-month output growth rose to 1.9% (AR). But the industry detail
continued mixed. July output of furniture fell 0.9% and at a 7.0% rate
during the last three months. Apparel output dropped 0.5% last month. To
the upside was output of electrical equipment rose at a 4.2% rate during
the last three months. Machinery output recovered some of its earlier
weakness with a 2.5% rise during the last three months.
· Production in the high tech sector rose 0.3% (17.4% y/y) during July but that y/y growth was down from the peak in March of 27.6%. Production of computers & office equipment rose 0.7% (15.4% y/y) but the three-month growth rate is slower at 6.9% (AR). Output of communications equipment fell 0.2% last month and three-month growth was a negative 1.4%.
· Capacity utilization ticked up to 79.9%. Utilization in the factory sector rose to 77.8%, near its lowest also since late-2004.
· Will Farmland Values Keep Booming? from the Federal Reserve Bank of Kansas City can be found here.