(July 17): US manufacturing production stalled in June, dragged down by a decline in durable goods such as machinery.
Factory output, which accounts for three-fourths of total industrial production, was unchanged after an upwardly revised 0.1% increase in May, Federal Reserve data out on Friday showed. The median estimate in a Bloomberg survey of economists called for a 0.1% advance.
Overall industrial production rose 0.1% for a second month. And output at utilities and mining each increased 0.4%, according to the report.
Within durables, other categories that also declined included wood products, electrical equipment and appliances. Meanwhile, production of computer and electronic products and defence and space equipment, which both saw strong gains in the two previous months, slowed in June.
The report, showing two months of stagnation, contrasts with other recent data signalling some recovery in manufacturing. But an upturn in energy prices amid renewed hostilities between the US and Iran risks driving up costs and sapping demand.
In the Fed report, capacity utilisation at factories, a measure of potential output being used, fell slightly to 75.7%. The overall industrial utilisation rate was unchanged.
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