Industrial production in the U.S. took off in June for the second consecutive month, fueled by a jump in auto sales and a desperate need for air conditioning as temperatures soared.
Output surged by 0.6 percent last month, following a significant rise in May. This twice as much as Wall Street was expecting.
Gas and electric utilities experienced a 2.8 percent boost in production as Americans cranked up their ACs to combat the blistering heat.
The Federal Reserve reported a 1.7 percent rise in auto production, contributing to the overall increase.
Consumer goods manufacturing output rose by a solid one percent while business equipment output sank 0.4 percent, presenting a mixed picture for the ex-autos factory sector. Overall manufacturing output rose 0.4 percent, which was above the flat reading analysts had forecast. The prior month’s gain was revised to a one percent increase from a 0.9 percent estimate.
Mining production, which includes oil and natural gas drilling, rose 0.4 percent.
Capacity utilization climbed to 78.8 percent from 78.3 percent. Still, it remains about a full percentage point below its historic average, indicating some idle capacity due to sluggish business.
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