Industrial Production Weakens in Q2

Industrial production was unchanged in June, according to the Federal Reserve. Increases for both manufacturing and mining offset a decline for utilities. However, for the second quarter as a whole, industrial production declined at an annual rate of 1.2 percent, its second consecutive quarterly decrease. Nonetheless, at 109.6 percent of its 2012 average, total industrial production was 1.3 percent higher this June than it was a year earlier, despite the recent quarterly declines.

Also for June, the Fed notes that manufacturing output advanced 0.4 percent. An increase of nearly 3 percent for motor vehicles and parts contributed significantly to the gain in factory production; excluding motor vehicles and parts, manufacturing output moved up only 0.2 percent.

Industrial production is one of the primary economic signals NTDA tracks for the quarterly Market Outlook newsletter.