Aaron Josefczyk | Reuters
A worker cuts a steel coil at the Novolipetsk Steel PAO steel mill in Farrell, Pennsylvania, March 9, 2018.
U.S. industrial production increased in June, boosted by a sharp rebound in manufacturing in addition to further gains in mining output, the latest sign of robust economic growth inside the second quarter.
The Federal Reserve said on Tuesday industrial production rose 0.6 percent last month after a downwardly revised 0.5 percent decline in May. Economists polled by Reuters had forecast industrial production rising 0.6 percent last month after a previously reported 0.1 percent dip in May.
Industrial production increased at a 6.0 percent annualized rate inside the second quarter, faster than the 2.4 percent pace logged inside the January-March period.
Manufacturing output surged 0.8 percent in June after decreasing 1.0 percent in May. A 7.8 percent jump in motor vehicle production buoyed manufacturing output last month. Motor vehicle production declined 8.6 percent in May after a fire at a parts supplier caused a sharp drop inside the assembly of trucks.
The data came on the heels of a report on Monday showing retail sales not only rose solidly in June, yet were much stronger than previously reported in May.
Strong industrial production in addition to retail sales, together with smaller trade deficits in April in addition to June, suggest economic growth accelerated sharply inside the second quarter.
Gross domestic product estimates for the April-June quarter are as high as a 5.2 percent rate, more than double the first quarter’s 2 percent pace.
Manufacturing, which accounts for about 12 percent of the economy, is actually being supported by a strong domestic in addition to global economy. yet escalating trade tensions between the United States in addition to its major trade partners, including China, Canada, Mexico in addition to the European Union, could undercut business spending.