Output at the nation’s factories, mines and utilities surged in June, the Federal Reserve reported Friday.
This is good news for parts stampers, because increased output of finished goods will trickle down into lowered inventory levels and turn into re-orders for component parts.
U.S. industrial production rose 0.9% in June. This is the strongest monthly increase since February 2004. Capacity utilization jumped to 80% in June from 79.4% in the previous month. This is the highest level of capacity utilization since December 2000.
The gains in production and capacity use were much larger than forecast. Economists were expecting production to rise 0.4% and capacity utilization to rise to 76.4%
[Ed note: I believe this figure is in error and should have been entered as 79.4 … Michael]
A separate report by the New York Federal Reserve Bank indicated that factory activity may have continued to improve in July. See full story.