US Indus Production Edges Up In June

WASHINGTON (Dow Jones)--U.S. industrial output edged up in June and capacity use was unchanged, suggesting the manufacturing sector may have stabilized but hasn't yet begun a sure recovery.

Industrial production rose 0.1% last month, the Federal Reserve said Wednesday. This followed a 0.1% rise in May, unrevised from the Fed's initial estimate.

Capacity use was unchanged in June at 74.3%. May capacity use was unrevised from the Fed's initial estimate of 74.3%. During the last four months, capacity use has remained at its lowest levels since June 1983.

The June report was a little better than Wall Street anticipated. A Dow Jones Newswires-CNBC poll of 18 economists called for June production to be unchanged and for capacity use to hold at 74.3% for the month.

Manufacturing has been particularly hard hit throughout the U.S. economy's recession and slowdown of the last few years. But recent reports suggest the sector has stabilized and could be headed for recovery.

The Institute for Supply Management said manufacturing activity contracted at a slower pace in June, as its purchasing managers index rose to 49.8 in June from 49.4 in May. Readings above 50 indicate expansion of activity and prices in the manufacturing sector, while readings under 50 denote contraction.

Also, the New York Federal Reserve's Empire State Manufacturing Survey has shown growing activity for the past three months. In the most recent reading, the index moved to 22.6 in July, slower from the month before but still signaling growth in the sector. Any number above zero means more manufacturers say business conditions are improving than say they are worsening.

Within the June industrial-production report, manufacturing output rose 0.4%, after a 0.1% rise in May. In June, gains in auto and mining production were offset by a sharp drop in utilities output, which the Fed attributed to unusually cool summer weather.

Manufacturing capacity use edged up to a level of 72.8% in June from May's 72.6%.

Table Of Data On US Industrial Production

.
.                               JUNE    MAY    APRIL   JUNE '02
.                                                    TO JUNE '03
Industrial Production Index   109.7   109.6   109.5
Monthly Percent Changes
   Industrial Prod. Index       0.1     0.1    -0.5    -1.0
   Ind'l Prod. Ex-High Tech     0.0     0.0    -0.6    -1.6
   Manufacturing                0.4     0.1    -0.6    -1.0
   Consumer Durables            0.8    -0.4    -0.8    -1.0
   Consumer Nondurables         0.3    -0.1    -0.4    -0.7
   Business Equipment           0.3     0.4    -0.7    -2.3
   Materials                    0.0    -0.1    -0.4    -1.0
   Utilities                   -3.5    -0.8     0.1    -2.7
   Mining                       1.0     0.6     0.1     0.9

(Changes are increases unless preceded by minus sign.)
 

  (MORE) Dow Jones Newswires

  07-16-03 0915ET- - 09 15 AM EDT 07-16-03

Table Of Data On US Capacity Utilization

.
Percent of capacity in use
.                               JUNE    MAY    APRIL    MARCH
Total Industry                  74.3    74.3    74.4    74.8
  Manufacturing                 72.8    72.6    72.5    73.1
    Durables                    68.4    68.3    68.3    68.7
      Primary Metals            72.0    71.2    74.1    73.5
      Motor Vehicles & Part     76.9    76.3    77.4    78.7
    Nondurables                 77.4    77.0    77.0    77.6
      Paper and Products        82.2    82.7    82.3    83.4
      Chemicals and Product     74.5    73.6    74.6    74.8
      Petroleum Products        87.8    89.2    87.6    89.3
  Mining                        85.4    84.6    84.2    84.1
  Utilities                     80.2    83.4    84.3    84.6
Stage Of Process Groups
  Crude                         83.1    82.6    82.4    82.8
  Primary and Semifinished      75.9    76.5    76.5    77.0
  Finished                      70.5    70.0    70.0    70.5
 

  (END) Dow Jones Newswires

  07-16-03 0915ET- - 09 15 AM EDT 07-16-03

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