US industrial production rises more than expected in July

US industrial production grew more than expected in July, marking its biggest monthly gain since November 2014, according to the latest data form the Federal Reserve.

Industrial output rose 0.7% following a 0.4% gain in June, beating expectations of a 0.3% increase. Utilities output was up 2.1% in July, with mining production up 0.7% and manufacturing output 0.5% higher.

On the year, however, industrial production was down 0.5%.

Capacity utilisation, which measures industrial slack, rose 0.5 percentage point in July to 75.9%, surpassing expectations of 75.6%.

Capital Economics said: “Overall, the spike in utilities output will be reversed once the weather gets back to normal, but the back-to-back gains in manufacturing output look more sustainable, particularly with the dollar more stable this year.”