Industrial Output Shows Minor Decline

According to the latest Federal Reserve Board of Governors report, the United States witnessed a 0.1% decrease in industrial production this July compared to June. This minor dip highlights a mixed performance across sectors.

Sector-wise Performance

Manufacturing remained stable month-on-month, showing resilience amidst fluctuating economic indicators. However, mining and utilities sectors didn't fare as well, with outputs decreasing by 0.4% and 0.2% respectively.

Year-on-Year Growth

Despite the monthly decline, industrial production has seen a 1.4% increase compared to July 2024. This growth is mirrored across manufacturing (1.4%), mining (1.9%), and utilities (0.8%), indicating a positive long-term trend.

Capacity Utilization Insights

The capacity utilization rate stood at 77.5% in July, which is 2.1 percentage points below the long-run average but marks a 1.5% improvement from the previous year, suggesting gradual recovery.