US industrial production bounds pasts forecasts in July

US industrial production accelerated sharply last month, led by gains in manufacturing of motor vehicles, business equipment and defence and space equipment.

According to the Department of Commerce, total output jumped at a month-on-month clip of 0.9% in July (consensus: 0.5%).

Manufacturing output was especially strong, more than doubling economists' forecasts with a rise of 1.4% (consensus: 0.6%).

By major market groups, production of business equipment surged by 2.8% on the month, alongside an increase of 0.9% in construction and a 1.0% rise in the output of consumer goods.

Upwards revisions to prior months data also meant that the degree of industrial capacity increased to 76.6% (consensus: 75.7%).