US industrial production rises below expectations in July

• Capacity utilization edges up to 76.3%, remaining well below long-term average

US industrial production rose less than expected in July, according to Federal Reserve data released Tuesday.

Industrial production increased 0.2% from the previous month, falling short of market expectations for a 0.3% rise.

The June increase was revised upward to 0.3% from 0.1%.

Manufacturing production, which accounts for the largest share of overall industrial output, also grew 0.2% in July after rising 0.3% in June.

Manufacturing output excluding motor vehicles and parts advanced 0.4%, while production of motor vehicles and parts fell 2.1%.

Mining output increased 0.2%, and utilities production rose 0.5%, reflecting gains in both electric and natural gas utilities.

Among major market groups, consumer goods production decreased 0.4%, as output of durable consumer goods dropped 1.4% and nondurable goods declined 0.1%.

Business equipment production, by contrast, rose 0.8%, supported by information-processing equipment and industrial and other equipment.

The output of defense and space equipment climbed 1.8%, while construction supplies production increased 0.8%.

Overall industrial production stood at 103% of its 2017 average and was 1.1% higher than in July last year.

Capacity utilization, which indicates the proportion of potential industrial output currently being used, edged up 0.1 percentage point to 76.3%.

The rate remained 3.1 percentage points below its 1972–2025 average, pointing to continued spare capacity across US industry.

Manufacturing capacity utilization increased to 76%, but was still 2.2 percentage points below its long-term average. Mining utilization rose to 86.1%, while the operating rate for utilities climbed to 70%.