The Fed says production in factories, mines and utilities rose 0.5% in July, while the level of use of industrial capacity in use rose to 68.5% from 68.1%. By contrast, industrial production suffered 0.4% downturn in June. Most importantly in regard to trucking companies and other industrial real estate users, factory output showed an even greater increase, rising 1%. The increase followed a 0.6% decline in June.

According to ISM, the PMI index of manufacturing activity climbed to 48.9% in July from 44.8% in June. This is its highest level since it hit 49.3% in August 2008. Though the current figure remains below the 50% mark that signals growth, the month-to-month increase was the largest in nine months. It has now climbed for seven straight months after reaching a low point of 32.9% in December. In addition, The New Orders Index jumped 6.1 points to 55.3%, while the Production Index, which fell to 25.5% in December, reached 57.9%, up 5.4 points from June.

Norbert J. Ore, chair of the ISM's Manufacturing Business Survey Committee, says the accelerating rate of positive change indicates manufacturers are gearing up for expansion. "The more leading components of the PMI — the New Orders and Production Indexes — rose significantly above 50%, thus setting an expectation for future growth in the sector," he comments. "Overall, it would be difficult to convince many manufacturers that we are on the brink of recovery, but the data suggests that we will see growth in the third quarter if the trends continue."