{"id":160862,"date":"2022-07-22T15:02:54","date_gmt":"2022-07-22T15:02:54","guid":{"rendered":"https:\/\/precoinnews.com\/?p=160862"},"modified":"2022-07-22T15:02:54","modified_gmt":"2022-07-22T15:02:54","slug":"u-s-industrial-production-unexpectedly-edges-lower-in-june","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/u-s-industrial-production-unexpectedly-edges-lower-in-june\/","title":{"rendered":"U.S. Industrial Production Unexpectedly Edges Lower In June"},"content":{"rendered":"
Industrial production in the U.S. unexpectedly edged modestly lower in the month of June, according to a report released by the Federal Reserve on Friday.<\/p>\n
The report showed industrial production slipped by 0.2 percent in June after revised data showed production was unchanged in May.<\/p>\n
The modest decrease surprised economists, who had expected industrial production to inch up by 0.1 percent compared to the 0.2 percent uptick originally reported for the previous month.<\/p>\n
The dip in industrial production partly reflected a continued decline in manufacturing output, which fell by 0.5 percent for the second consecutive month.<\/p>\n
Utilities output also tumbled by 1.4 percent in June after surging by 1.9 percent in May, while mining output shot up by 1.7 percent in June following a 1.2 percent jump in the previous month.<\/p>\n
“This report is another indication that the economy<\/span> is losing momentum,” said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics. “Looking ahead, moderating goods demand and persistent supply chain challenges will constrain industrial production expansion.” <\/p>\n She added, “However, these challenges won’t send the industrial sector into a tailspin. The economy still has a fighting chance to avoid a recession, but the pathway to a soft landing is admittedly narrowing.”<\/p>\n The report also showed capacity utilization in the industrial sector fell to 80.0 percent in June from a revised 80.3 percent in May. <\/p>\n Economists had expected capacity utilization to increase to 80.6 percent from the 79.0 percent originally reported for the previous month.<\/p>\n Capacity utilization in the manufacturing and utilities sectors slid to 79.3 percent and 75.8 percent, respectively, while capacity utilization in the mining sector rose to 88.0 percent. <\/p>\n