US industrial production jumps 0.9% in June

Output from US factories, mines and utilities jumped a greater-than-expected 0

Output from US factories, mines and utilities jumped a greater-than-expected 0.9 per cent in June, a Federal Reserve report showed today.

The US central bank said warmer-than-usual temperatures boosted utilities output 5.3 per cent, while manufacturing rose a more moderate 0.4 per cent.

Overall industrial production rose last month at the fastest pace since a 1.1 per cent gain in February 2004, after a revised 0.3 per cent gain in May.

Wall Street analysts had expected output in June to rise a slimmer 0.4 per cent.

READ MORE

Despite last months' large rise, total output advanced at an annual rate of only 2.1 per cent in the second quarter, the smallest quarterly increase since the second quarter of 2003, the Fed said.

Capacity utilisation improved in June to 80.0 per cent, ahead of economist expectations for a 79.6 per cent showing.

It was the strongest since an 80.3 per cent rate in December 2000. May capacity utilisation was 79.4 per cent. The surge in June utilities output more than reversed a 0.5 per cent fall the month before.

Consumer goods production gained 1.2 per cent in June.