Source: Economics Group of Wells Fargo Bank, N.A.
The 0.6% jump in July industrial production was due largely to a surge in auto production but also came with upward revisions that lessened the June decline in manufacturing output. Manufacturing regained its footing somewhat in July. Sustained production growth will require continued demand for durable goods and improvement in supply chains; both look iffy at the moment.
Motor Vehicles Production Making up for Lost Time
Industrial production notched a solid 0.6% increase in July. The non-manufacturing output measures more-or-less canceled one another out. Mining output rose 0.7% and utilities output sank 0.8%. So the headline gain is mostly a function of what happened in terms of factory output (chart). READ FULL ARTICLE>>