(Aug 18): US industrial production rose for a second month in July, driven by increases in manufacturing and utility output.

The 0.2% advance in production at factories, mines and utilities followed an upwardly revised 0.3% rise a month earlier, Federal Reserve data showed Tuesday.

Factory output, which accounts for three-fourths of total industrial production, advanced 0.2% following an upwardly revised 0.3% gain a month earlier and despite a drop in auto manufacturing.

Output at utilities increased in July by the most in three months, while mining also rose.

The report adds to signs of momentum in manufacturing, with resilient consumer demand and solid business investment — especially that related to the artificial-intelligence buildout. The sector has showed strength despite rising input costs and supply challenges related to the Iran war.

At the same time, rising input costs and supply challenges related to the Iran war remain challenges for factories.

The Fed’s report showed a 0.8% increase in output of business equipment and a 1.8% jump in production of defense and space equipment. Production of construction supplies rose the most since January. By industry group, the output of computer and electronic products rose 1.9%.

At the same time, auto production fell 2.1%, the most since October. Excluding motor vehicles, manufacturing output increased 0.4%.

Uploaded by Magessan Varatharaja