US industrial production rise in July higher than estimate

Half of gain in factory output attributable to jump of 11.2% for motor vehicles, parts, Fed says

By Ovunc Kutlu

ANKARA (AA) - US industrial production rose 0.9% in July on a monthly basis, higher than the market estimate of 0.5%, according to data released by the Federal Reserve on Tuesday.

Industrial production, which measures the change in the value of output produced by manufacturers and utilities, showed an increase of 0.2% in June.

Manufacturing production jumped 1.4% last month, again higher than the market consensus of 0.6%, while it fell 0.3% the previous month.

"About half of the gain in factory output is attributable to a jump of 11.2% for motor vehicles and parts, as a number of vehicle manufacturers trimmed or canceled their typical July shutdowns," the Fed said in a statement.

Capacity utilization rate increased 0.7 percentage points in July to 76.1%, again beating expectations of 75.7%.

The utilization rate, which is the percentage of production capacity being utilized and also reflects overall demand in the American economy, was at 75.4% in June.

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