Carmakers drive acceleration of US manufacturing output in June
US manufacturing output accelerated in June to grow at its quickest pace of the year so far, led by rising production in the automotive sector.
Manufacturing output ticked up 0.4 per cent during the month, according to Federal Reserve data, having risen 0.2 per cent in May. Driving this figure was the motor vehicles and parts segment, which posted a “substantial increase” to rise almost 3 per cent.
“An increase of nearly 3 per cent for motor vehicles and parts contributed significantly to the gain in factory production; excluding motor vehicles and parts, manufacturing output moved up 0.2 per cent,” the Federal Reserve said.
The strong performance in the factory sector was offset by a lacklustre utilities reading, however, as “milder-than-usual temperatures” reduced demand for air conditioning. This left utilities output down 3.6 per cent. Mining output rose 0.2 per cent.
As a result, overall industrial production — combining the three major industry groups — was flat in June. This was just under the slight rise of 0.1 per cent expected by economists in a Reuters poll.