U.S. factory output continues upward trend
WASHINGTON – U.S. factory output rose for the sixth consecutive month in July, led by a jump in the production of motor vehicles, furniture, textiles and metals.
Manufacturing production rose 1 percent in July compared with the prior month, the Federal Reserve reported Friday. Factory output in June was revised slightly higher to a 0.3 percent increase. Over the past 12 months, manufacturing has risen 4.9 percent.
Demand for autos surged 10.1 percent last month, the largest increase since July 2009. The broader increase in manufacturing points to stronger growth across the economy, suggesting that manufacturers expect the pace of business investment and consumer spending to improve in the coming months.
“Manufacturing will continue to add to the recovery throughout 2014 and into 2015,” said Stuart Hoffman, chief economist at PNC Financial Services.
Overall industrial production, which includes manufacturing, mining and utilities, rose 0.4 percent in July, dragged down by a 3.4 percent drop in production at utilities.
Manufacturers added 28,000 workers last month, according to the government’s jobs report. That builds on the 23,000 employees that factories added in June, a sign that companies expect demand to continue its upward swing.
Factory orders rose a seasonally adjusted 1.1 percent in June compared with the previous month, the Commerce Department reported Tuesday.
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