U.S. industrial production rose 1.0% in June after having risen 1.3% in May. Manufacturing output decreased by 0.4% in June after three months of gains. At 92.5% of its 2007 average, total industrial output in May was 8.2% above its year-earlier level. June’s overall manufacturing capacity utilization rate of 74.1% was 5.9 percentage points (ppts) above the rate a year earlier. .
The Purchasing Managers Index (PMI) decreased to 56.2 in June. Thirteen out of 18 manufacturing industries reported growth in June including fabricated metal products; computer and electronic products; transportation equipment; plastics and rubber products; electrical equipment, appliances and components; petroleum and coal; miscellaneous manufacturing; and chemical products. The machinery industry was included in those reporting June contractions.
The Consumer Confidence Index decreased by 9.8 points in June to 52.9 after three consecutive monthly gains. June’s Present Situation Index decreased to 25.5 from 29.8. The Expectations Index also declined to 71.2 from 84.6.
New orders for manufactured durable goods declined 1.1% in May to $192.0 billion. May’s shipments of manufactured durable goods decreased 0.3% to $196.4 billion following a 2.0% April increase, transportation equipment contributing the most to the decline. May’s inventories of manufactured durable goods increased by 0.9% to $304.7 billion after a 0.8% April increase. For the seventh consecutive month, primary metals inventories increased the most. May’s primary metals inventories increase was 3.1% or $0.9 billion, providing a total primary metals inventory of $30.7 billion.
The gross domestic product (GDP) in the first quarter of 2010 grew by a seasonally- and inflation-adjusted rate of 2.7% compared to 5.6% growth in the fourth quarter of 2009. Automotive output has strengthened the GDP, contributing 0.40 ppts to the first quarter change after enhancing the fourth quarter 2009 number by 0.45 ppts.
The chemical and allied products producer price index decreased to 245.6 in June 2010, down from 246.8 in May. The index peaked in August 2008 at 263.3.
