Industrial Output Rose in July

Washington, DC, Aug. 14, 2009–U.S. industrial output rose in July for the first time since October, the Federal Reserve reported Friday.

The seasonally adjusted output of the nation’s factories, mines and utilities increased 0.5% last month, reversing course after a 0.4% decline in June. Output is down 13.1% in the past year.

It was only the second increase in industrial production since the recession began in December 2007. Since then, output has fallen 14.6%.

Industrial production is one of four monthly indicators used to judge whether the economy is growing or is in recession; the others are payrolls, incomes and business sales.

Economists were looking for a stronger increase of 0.7% in industrial output for July.

Capacity utilization increased to 68.5% from a record-low 68.1% in June. Within manufacturing alone, the utilization rate recovered to 65.4% from a record-low 64.7%.

Excluding autos, industrial output for July was off 0.1%.

Manufacturing output rose 1%, also the first increase since October and the largest increase since December 2006. Excluding autos, manufacturing output rose 0.2%.