Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

US factory output jumps 1 per cent in July; autos, furniture, textiles and metals lead gains

In this July 30, 2014 photo, quality control inspector Tina Person, left, and scanner pperator Dewanna Murphy inspect tubes that are used in the production of the fuel bundle assembly at the GE Hitachi plant in Castle Hayne, N.C. (AP Photo/The Star-News, Mike Spencer)

Enlarge Image

In this July 30, 2014 photo, quality control inspector Tina Person, left, and scanner pperator Dewanna Murphy inspect tubes that are used in the production of the fuel bundle assembly at the GE Hitachi plant in Castle Hayne, N.C. (AP Photo/The Star-News, Mike Spencer)

WASHINGTON - U.S. factory output rose for the sixth consecutive month in July, led by a jump in the production of motor vehicles, furniture, textiles and metals.

Manufacturing production rose 1 per cent in July compared with the prior month, the Federal Reserve reported Friday. Factory output in June was revised slightly higher to a 0.3 per cent increase. Over the past 12 months, manufacturing has risen 4.9 per cent.

Demand for autos surged 10.1 per cent last month, the largest increase since July 2009. The broader increase in manufacturing points to stronger growth across the economy, suggesting that manufacturers expect the pace of business investment and consumer spending to improve in the coming months.

"Manufacturing will continue to add to the recovery throughout 2014 and into 2015," said Stuart Hoffman, chief economist at PNC Financial Services.

Overall industrial production, which includes manufacturing, mining and utilities, rose 0.4 per cent in July, dragged down by a 3.4 per cent drop in production at utilities.

Several other reports suggest that factory production improved this summer.

Manufacturers added 28,000 workers last month, according to the government's jobs report. That builds on the 23,000 employees that factories added in June, a sign that companies expect demand to continue its upward swing.

Separately, the Institute for Supply Management, a trade group of purchasing managers, reported that its manufacturing index climbed to 57.1 in July. That's the highest level since April 2011 and up from 55.3 in June.

Anything above 50 signals that manufacturing activity is growing.

The increase in the index led Paul Dales, senior U.S. economist at Capital Economics, to conclude that "manufacturing payrolls may soon start to rise by close to 50,000 a month."

Factory orders rose a seasonally adjusted 1.1 per cent in June compared with the previous month, the Commerce Department reported Tuesday. Orders had fallen 0.6 per cent in May after three straight monthly gains.

An 8.4 per cent jump in demand for commercial aircraft drove much of the gain, yet orders also picked up for machinery, iron, steel, computers and electronics.

Rising factory output should help the current economic expansion to continue.

The U.S. economy shrank at a 2.1 per cent annual rate in the first quarter, although it bounced back at an annual clip of 4 per cent in the second quarter

Most analysts expect the economy to expand at a roughly 3 per cent rate in the second half the year.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates