By Steve Goldstein, MarketWatch
WASHINGTON (MarketWatch) — Industrial production rose in June for the first time in two months but at a slender rate, and without any help from manufacturing, the Federal Reserve reported Friday.
The growth rate was slower than the 0.5% consensus increase predicted by economists polled by MarketWatch.
And May’s levels for industrial production were revised lower to show a 0.1% drop, from the initially reported 0.1% gain.
For the second quarter, industrial production rose at a slender 0.8% annual rate, in what the Fed mostly attributed to the supply-chain disruptions following the March earthquake in Japan. Motor vehicle and part production tumbled 16.4% from April to June, the Fed’s data showed.
Output growth in June was led by a 0.9% increase in the volatile utilities component, which largely reflects air conditioning usage, while manufacturing output didn’t budge at all.
Capacity utilization stayed at 76.7% for a second month, slightly below economist expectations of 76.9%.
Earlier Friday, the Federal Reserve Bank of New York reported a second straight negative reading in its Empire State manufacturing index for July. See story on Empire State index.
Steve Goldstein is MarketWatch's Washington bureau chief.
