U.S. industrial production likely to have rebounded in June

U.S. industrial production is likely to have grown in June. In the prior month, industrial output had fallen 0.1 percent, with most of the fall because of a 0.7 percent decline in manufacturing output. Some of the softness in manufacturing could be linked to disruptions in the auto sector led by a major fire at a parts supplier. But, nondurable manufacturing also fell with falls in a majority of the sub-sectors. Meanwhile, mining and utilities production came in stronger in May. Utilities had grown 1.1 percent. Higher energy and commodity prices also continued to stimulate mining activity, which rose 1.8 percent.

Subdued measures such as the ISM index, continue to show a much rosier picture of the factory sector than what is currently been shown in the hard data. In spite of May’s overall weak report, industrial activity is likely to have rebounded to a level that is more in line with the sentiment being expressed via the several manufacturing surveys, stated Wells Fargo in a research report. Industrial production is expected to have grown 0.5 percent in June.

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