Tuesday, July 7th17.8°C
26926
25998

US factory output jumps 1 per cent in July; autos, furniture, textiles and metals lead gains

WASHINGTON - U.S. factory output rose for the sixth consecutive month in July, led by a jump in the production of motor vehicles, furniture, textiles and metals.

Manufacturing production rose 1 per cent in July compared with the prior month, the Federal Reserve reported Friday. Factory output in June was revised slightly higher to a 0.3 per cent increase. Over the past 12 months, manufacturing has risen 4.9 per cent.

Demand for autos surged 10.1 per cent last month, the largest increase since July 2009. The broader increase in manufacturing points to stronger growth across the economy, suggesting that manufacturers expect the pace of business investment and consumer spending to improve in the coming months.

"Manufacturing will continue to add to the recovery throughout 2014 and into 2015," said Stuart Hoffman, chief economist at PNC Financial Services.

Overall industrial production, which includes manufacturing, mining and utilities, rose 0.4 per cent in July, dragged down by a 3.4 per cent drop in production at utilities.

Several other reports suggest that factory production improved this summer.

Manufacturers added 28,000 workers last month, according to the government's jobs report. That builds on the 23,000 employees that factories added in June, a sign that companies expect demand to continue its upward swing.

Separately, the Institute for Supply Management, a trade group of purchasing managers, reported that its manufacturing index climbed to 57.1 in July. That's the highest level since April 2011 and up from 55.3 in June.

Anything above 50 signals that manufacturing activity is growing.

The increase in the index led Paul Dales, senior U.S. economist at Capital Economics, to conclude that "manufacturing payrolls may soon start to rise by close to 50,000 a month."

Factory orders rose a seasonally adjusted 1.1 per cent in June compared with the previous month, the Commerce Department reported Tuesday. Orders had fallen 0.6 per cent in May after three straight monthly gains.

An 8.4 per cent jump in demand for commercial aircraft drove much of the gain, yet orders also picked up for machinery, iron, steel, computers and electronics.

Rising factory output should help the current economic expansion to continue.

The U.S. economy shrank at a 2.1 per cent annual rate in the first quarter, although it bounced back at an annual clip of 4 per cent in the second quarter

Most analysts expect the economy to expand at a roughly 3 per cent rate in the second half the year.

The Canadian Press


Read more Business News

26908


Recent Trending




Today's Market
S&P TSX14453.09-140.48
S&P CDNX656.73-6.60
DJIA17539.34-144.24
Nasdaq4923.27-68.67
S&P 5002057.27-11.49
CDN Dollar0.7834-0.0072
Gold1152.20-20.70
Oil52.32-0.81
Lumber284.40+0.70
Natural Gas2.719-0.037

 
Okanagan Companies
Pacific Safety0.175+0.005
Knighthawk0.010.00
QHR Technologies Inc1.52+0.00
Cantex0.05+0.02
Anavex Life Sciences0.5425+0.0225
Metalex Ventures0.065-0.010
Russel Metals22.17-0.22
Copper Mountain Mining1.03-0.06
Colorado Resources0.08-0.01
ReliaBrand Inc0.007+0.001
Sunrise Resources Ltd0.025-0.010
Mission Ready Services0.165+0.005
Decisive Dividend Corporation3.00+0.00

 





FEATURED Property
2338875#17 3359 Cougar Rd
3 bedrooms 3 baths
$519,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Increase property value

Photo: Thinkstock.comHere are five of the best renovations you can do to your home to increase property value. These five renovations can sometimes have a return on investment five to six times what t...


Active listening

Has this ever happened to you? You had an initial meeting with a prospect. You asked that prospect what seemed to be all the right questions. You had what felt to you like a good conversation, and bas...


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...

_



26928




Member of BC Press Council


26906