Industrial Production Slows, as Expected

Industrial Production slowed to +.3% MoM in July, as expected, down from a revised gain of +.6% MoM in June. Capacity utilization unexpectedly popped higher to 81.9%, the highest level in 10 months.

Manufacturing output held a steady growth pace at +.6% MoM as machinery production jumped up to +1.1% MoM from unchanged the prior month. Auto production and computer/electronics also saw smaller increases. The only negative was utility demand, which fell -2.1% MoM due to cooler temperatures. Most market groups were higher, or only down marginally. The only category seeing larger than a -.1% decline in demand was business supplies at -.3% MoM. Strength was seen in business equipment at +.9% MoM and defense at +.6% MoM.

High tech industries and utilities saw a decline in capacity utilization, but all other categories improved. Manufacturing and mining are both at their highest levels of the past six months.