Industrial Production on the Rise Again

WASHINGTON, DC-US Industrial production showed clear signs of revival in July. According to the Federal Reserve, industrial production rose for the first time in nine months, while the Institute of Supply Management (ISM) in Tempe, AZ reports its manufacturing index jumped 4.1 percentage points to its highest level in a year.

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.