Industrial Production Drought Ends

Although gross production from American factories, mines, and utilities has slowed for the past nine months, July marked a larger-than-expected increase in production and the first gain in the same period. Marking the second increase in production since December 2007, analysts have pointed to the statistic as a beacon of hope that the economy may be on a path to recovery.
 
The data came from the Federal Reserve, which noted a 0.5 percent total increase in production throughout the month of July, trumping the average analyst estimate of a 0.3 percent increase. Automakers were the most significant component of the increase, with the production of new motor vehicles and parts rising 20.1 percent as companies like General Motors and Chrysler reopened manufacturing plants.
 
Manufacturing output rose 0.2 percent and mining output rose 0.8 percent as factories and mining outfits were able to increase operations, while utilities fell 2.4 percent thanks to mild weather. Analysts are expecting production to remain relatively steady for the rest of the year as retail outlets continue to replenish depleted inventories.

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