Manufacturing may be gaining some traction in the U.S. after showing positive numbers for the second straight month in June.
According to statistics released by the Federal Reserve, the 0.6% increase in production at factories, mines and utilities around the country came after a 0.9% gain the previous month.
It marked the biggest two-month advance since late 2021.
Factory output rose 0.4% — in a broad advance that included gains in autos, electrical equipment, appliances and nondurable goods — following May’s upwardly revised 1% increase. Mining and energy extraction rose 0.3%, while output growth at utilities accelerated, according to a report from Bloomberg.
According to the Bloomberg report, the Fed’s report showed capacity utilization at factories, a measure of potential output being used, rose to 77.9%, the highest level since September 2023. The overall industrial utilization rate rose to 78.8%.
Output of consumer goods rose 1%, the most in nearly a year. A separate report on Tuesday showed that U.S. retail sales, excluding the impact of a cyberattack on auto dealerships, rose in June by the most in three months, a sign consumers regained their footing at the end of the second quarter.
Motor vehicle assemblies surged to 13.4 million on an annualized basis, the highest in nearly nine years, Bloomberg reported.
