Industrial Output Up, But Less Than Expected

Washington, September 15– Industrial output rose less than expected in August amid sharp declines in utilities and mining output, the Federal Reserve said Wednesday.

Industrial production rose 0.1% last month, continuing at a slower pace July’s recovery from a late-second-quarter dip. The Fed revised upward its estimate of July industrial production growth to 0.6% from the previously reported 0.4%. The June figure was also revised up slightly to a 0.4% decline from the previously reported 0.5% dip.

August industrial capacity utilization at 77.3% was unchanged from July’s revised level, which was originally reported at 77.1%. June industrial capacity use was unrevised at 76.9%.

Economists surveyed by Dow Jones Newswires and CNBC had called for August industrial production to rise 0.5% and for capacity use to notch up 0.3 percentage points to 77.4%.

Utilities output registered a sharp decline amid cool late-summer temperatures in many parts of the country, while manufacturing activity grew more than the overall production index.

August manufacturing production rose 0.5% after a revised 0.9% rise in July, originally reported as a 0.6% increase. August manufacturing capacity use came in at 76.8%, up from July’s revised level of 76.6%, originally reported as 76.3%, and June’s 76.0%.