In its report on July 17, the Federal Reserve said that industrial production increased 0.9% in July after moving up 0.2% in June.
At 101.1% of its 2017 average, total industrial production in July was 6.6% above its year-earlier level but 0.2% below its pre-pandemic (February 2020) level.
The manufacturing output rose 1.4%. The report notes that about half of the gain in factory output is attributable to a jump of 11.2% for motor vehicles and parts, as a number of vehicle manufacturers trimmed or canceled their typical July shutdowns. Despite the large increase last month, vehicle assemblies continued to be constrained by a persistent shortage of semiconductors; the production of motor vehicles and parts in July was about 3-1/2% below its recent peak in January 2021.
The index for overall manufacturing in July was 0.8% above its pre-pandemic level.
Production of durable goods rose 2.4% in July. In addition to the increase for motor vehicles and parts, gains of 1.5% or more were recorded by machinery; electrical equipment, appliances, and components; aerospace and miscellaneous transportation equipment; and miscellaneous manufacturing.
The output of nondurable goods rose 0.3%; the largest increases were recorded by textile and product mills and by plastics and rubber products. The output of other manufacturing (publishing and logging) increased 0.2%.
Capacity utilization for manufacturing increased 1.1 percentage points in July to 76.6%.
