![\"US](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/invezz:7eda43f67094b-62df21d209f98b0d7b797d8d85e5a1a2-resized.jpeg\")
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US industrial production eked out a 0.1% gain in August after falling 0.4% in July, the Federal Reserve reported on Tuesday. <\/p>\n
The modest rise reflected a recovery in manufacturing and mining activity, though weakness in utilities limited overall growth.<\/p>\n
At 103.9% of its 2017 average, the industrial production index stood 0.9% higher than in August last year. <\/p>\n
Capacity utilization remained at 77.4%, unchanged from July and 2.2 percentage points below its long-run average dating back to 1972.<\/p>\n
Autos lift manufacturing output<\/p>\n
Manufacturing output rose 0.2% in August, building on a relatively soft performance in July when it slipped 0.1%. <\/p>\n
The motor vehicles and parts sector drove much of the increase, posting a sharp 2.6% rise as automakers ramped up production. <\/p>\n
Factory output excluding vehicles edged only 0.1% higher, pointing to uneven conditions across industries.<\/p>\n
Durable goods manufacturing increased 0.2%, with strength in autos offsetting declines in fabricated metals and machinery. <\/p>\n
The nondurable segment improved by 0.3% following a July decline, supported by robust gains in textiles and petroleum products. <\/p>\n
Plastics and rubber, however, contracted by 0.7%, while chemicals and food-related industries managed smaller increases of 0.3% and 0.2%.<\/p>\n
Overall, manufacturing output was 0.9% above its year-earlier level, underscoring a gradual but inconsistent recovery.<\/p>\n
Mining improves while utilities drag<\/p>\n
Mining output rebounded 0.9% in August after a 1.5% decline in July, with capacity utilization in the sector rising to 90.6%, more than four percentage points above its long-run average. <\/p>\n
The rebound highlights resilience in extractive industries despite broader economic uncertainty.<\/p>\n
In contrast, utilities posted a 2% decline, led by a 2.3% drop in electric power generation. <\/p>\n
Natural gas utilities edged higher by 0.2% but were not enough to offset the pullback in electricity demand. <\/p>\n
Utility operating rates slipped to 68.6%, well below their long-term average.<\/p>\n
Market group performance remains uneven<\/p>\n
Performance across market groups highlighted the sector\u2019s mixed picture. <\/p>\n
Consumer durables climbed 0.6%, largely due to the strength of automotive products, while nondurables rose 0.3%. <\/p>\n
Business equipment output slipped 0.1% as weakness in industrial machinery outweighed gains in transit and information processing equipment.<\/p>\n
Construction supplies advanced 0.6%, while business supplies fell 0.4%. Materials output edged up just 0.1%, suggesting a tentative recovery in input demand.<\/p>\n
Outlook tempered by weak capacity use<\/p>\n
The August report suggests industrial production is stabilizing following July\u2019s setback, but momentum remains modest. <\/p>\n
Stronger auto output and a rebound in mining offered support, yet subdued demand for utilities and machinery underscores lingering headwinds.<\/p>\n
With capacity utilization stuck below its long-run average, analysts say the sector faces challenges in building sustained momentum. <\/p>\n
Economists expect production to continue improving gradually, though risks from weaker global demand and tariff-related price pressures could weigh on the outlook in coming months.<\/p>\n","protected":false},"excerpt":{"rendered":"US industrial production eked out a 0.1% gain in August after falling 0.4% in July, the Federal Reserve…\n","protected":false},"author":2,"featured_media":3612,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-26363","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/26363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=26363"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/26363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/3612"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=26363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=26363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=26363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}