US industrial production rose in June due to utility sector performance

In June, US industrial production showed an increase of 0.3% for the first time in four months. This was supported by higher output in utilities (+2.8%) and modest growth in manufacturing (+0.1%). Meanwhile, the mining sector's performance weakened.

With the June data coming in, it must be noted that US manufacturing output rose 2.1% for the quarter. This is only slightly behind the record growth rate in manufacturing at the end of 2021.

According to the US Federal Reserve, the increase in manufacturing output last month was driven by growth in production of commercial airplanes, machinery, furniture, and primary metals. When looking at output by market group, there was a rise in production of construction and household goods. Business equipment output grew at a slower pace.

Still, as Bloomberg notes, US manufacturers are facing a number of challenges that include higher duties on imported materials, uncertainty over Donald Trump's trade policies, and slowing consumer spending.