Data released on Wednesday showed industrial production rose 5.4% in June, above the 4.3% of market consensus. Analysts at Wells Fargo point out autos led a broadening increase in manufacturing production, while the drag from mining eased as oil demand has firmed a bit.
Key Quotes:
“As more of the nation’s factories re-opened in June, manufacturing production grew 7.2%. Auto & parts production posted another significant bounce (up 105%), as consumers began to return to dealer lots.”
“The rebound extended more broadly beyond the auto sector compared to May, with production in every major manufacturing industry up in June.”
“Manufacturing output is down 11% since January.”
“Total industrial production (IP) rose a more modest 5.4%, as low oil prices continue to weigh on energy extraction.”
“Capacity utilization improved, but underscores the depressed levels of activity relative to the start of the year.”
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