Industrial production was flat during June. According to analysts at Wells Fargo, a drop in utilities output outweighed gains in mining and manufacturing. They see that despite the second consecutive monthly gain, manufacturing output remains fairly weak.
Key Quotes:
“Overall industrial production was essentially unchanged in June. However, the underlying details paint a slightly better picture, as solid gains in manufacturing and mining were not enough to offset a decline in utilities.
“Mining rose 0.2%, bolstered by oil and gas extraction. A steadily declining rig count will limit potential future gains. Utilities gave back all of May’s weather-induced bump and dropped 3.6%.
“Slowing global growth, trade uncertainty and a stronger dollar will likely continue to weigh heavily on the factory sector.”
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