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U.S. Factory Output Surges

U.S. factory production rose in July for the first time in three months, boosted by a surge in motor-vehicle output that helped manufacturing to stabilize. Output…

By Vince Golle | August 17, 2023 at 03:27 PM
Photo: The production line at the Rouge Electric Vehicle Center in Dearborn, Michigan. Photographer: Jeff Kowalsky/AFP/Getty Images The production line at the Rouge Electric Vehicle Center in Dearborn, Michigan. Photographer: Jeff Kowalsky/AFP/Getty Images

U.S. factory production rose in July for the first time in three months, boosted by a surge in motor-vehicle output that helped manufacturing to stabilize.

Output increased 0.5 percent from June, erasing the prior month’s decline, Federal Reserve data showed Wednesday. Total industrial production, which includes mining and utilities, jumped 1 percent, the most since the start of the year.

Factory production was led by a 5.2 percent surge in motor-vehicle output. The annualized rate of car assemblies increased to 11.87 million units, the fastest rate since the end of 2018. The data showed that manufacturing output excluding motor vehicles rose just 0.1 percent after falling in the previous two months.

Metric Actual Estimate
Manufacturing production (month-over-month) +0.5% 0.0%
Industrial production (month-over-month) +1% +0.3%

Even with the monthly advance, the Fed’s index of factory output was down 0.7 percent from a year ago, with manufacturers still facing challenges of a struggling global economy.

What Bloomberg Economists Say…

“With downward revisions of past data accounting for the upward surprises in the July report, and with the headline being driven more so by weather than by demand for core goods, we continue to view the manufacturing landscape as softening as demand for core goods wanes.”

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