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Manufacturing Output Rose 1.4% in July

Manufacturing Output Rose 1.4% in July

Aug. 19, 2021
The increase is due to large jump for motor vehicles and parts, says the Federal Reserve.

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%.

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