Manufacturing output in the U.S. climbed more than expected in July, with production rising at auto plants and elsewhere, suggesting underlying resilience in the industry despite weakening business confidence.
The Federal Reserve said on Tuesday that manufacturing production increased by 0.7% in July after falling by 0.4% in June. Manufacturing output was expected to increase by 0.2 percent, according to Reuters’ poll of economists. Production went up by 3.2% when compared to July of 2021.
Demand for manufactured goods, which accounts for 11.9% of the US economy, continues to be strong despite spending is gradually shifting back to services. However, risks are mounting as shops stockpile surplus inventory, particularly clothes.
Vehicle manufacturing factories saw a 6.6% increase in output last month. Except for automobiles, manufacturing increased by 0.3%.