Swing To Trade
  • Stock
  • Politics
  • Business
  • Sports
Stock

US Industrial production posts a modest rebound of 0.1% as autos and mining offset utility weakness

by admin September 16, 2025
September 16, 2025

US industrial production eked out a 0.1% gain in August after falling 0.4% in July, the Federal Reserve reported on Tuesday.

The modest rise reflected a recovery in manufacturing and mining activity, though weakness in utilities limited overall growth.

At 103.9% of its 2017 average, the industrial production index stood 0.9% higher than in August last year.

Capacity utilization remained at 77.4%, unchanged from July and 2.2 percentage points below its long-run average dating back to 1972.

Autos lift manufacturing output

Manufacturing output rose 0.2% in August, building on a relatively soft performance in July when it slipped 0.1%.

The motor vehicles and parts sector drove much of the increase, posting a sharp 2.6% rise as automakers ramped up production.

Factory output excluding vehicles edged only 0.1% higher, pointing to uneven conditions across industries.

Durable goods manufacturing increased 0.2%, with strength in autos offsetting declines in fabricated metals and machinery.

The nondurable segment improved by 0.3% following a July decline, supported by robust gains in textiles and petroleum products.

Plastics and rubber, however, contracted by 0.7%, while chemicals and food-related industries managed smaller increases of 0.3% and 0.2%.

Overall, manufacturing output was 0.9% above its year-earlier level, underscoring a gradual but inconsistent recovery.

Mining improves while utilities drag

Mining output rebounded 0.9% in August after a 1.5% decline in July, with capacity utilization in the sector rising to 90.6%, more than four percentage points above its long-run average.

The rebound highlights resilience in extractive industries despite broader economic uncertainty.

In contrast, utilities posted a 2% decline, led by a 2.3% drop in electric power generation.

Natural gas utilities edged higher by 0.2% but were not enough to offset the pullback in electricity demand.

Utility operating rates slipped to 68.6%, well below their long-term average.

Market group performance remains uneven

Performance across market groups highlighted the sector’s mixed picture.

Consumer durables climbed 0.6%, largely due to the strength of automotive products, while nondurables rose 0.3%.

Business equipment output slipped 0.1% as weakness in industrial machinery outweighed gains in transit and information processing equipment.

Construction supplies advanced 0.6%, while business supplies fell 0.4%. Materials output edged up just 0.1%, suggesting a tentative recovery in input demand.

Outlook tempered by weak capacity use

The August report suggests industrial production is stabilizing following July’s setback, but momentum remains modest.

Stronger auto output and a rebound in mining offered support, yet subdued demand for utilities and machinery underscores lingering headwinds.

With capacity utilization stuck below its long-run average, analysts say the sector faces challenges in building sustained momentum.

Economists expect production to continue improving gradually, though risks from weaker global demand and tariff-related price pressures could weigh on the outlook in coming months.

The post US Industrial production posts a modest rebound of 0.1% as autos and mining offset utility weakness appeared first on Invezz

previous post
Why Tesla stock is upbeat on Tuesday
next post
LimeWire acquires Fyre Festival, asking ‘What Could Possibly Go Wrong?’

Related Posts

From LUV to HOG to RACE: do quirky...

January 11, 2026

Evening digest: US job numbers, Iran unrest, OpenAI-SoftBank...

January 10, 2026

This $1B OpenAI–SoftBank bet reveals what AI can’t...

January 10, 2026

Kansas crop woes fuel wheat rally ahead of...

January 10, 2026

What to expect from US big banks as...

January 10, 2026

India’s economy looks strong with low inflation—but do...

January 10, 2026

US stocks jittery at open after jobs data:...

January 9, 2026

Oklo stock surges 15% after Meta deal: is...

January 9, 2026

Gartner stock forms an alarming pattern: will it...

January 9, 2026

Tesla stock surges nearly 2% today: here’s why...

January 9, 2026
Join The Exclusive Subscription Today And Get Premium Articles For Free

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent Posts

    • From LUV to HOG to RACE: do quirky stock tickers influence performance?

      January 11, 2026
    • The 10* most important 49ers entering wild card game vs Eagles

      January 11, 2026
    • Ilia Malinin is officially an Olympian. Next up, a shot at gold in Milan

      January 11, 2026
    • Ilia Malinin is a lock. Who else makes US Olympic figure skating team?

      January 11, 2026
    • Jaguars vs Bills live updates: Follow the action here

      January 11, 2026
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 SwingToTrade.com All Rights Reserved.

    Swing To Trade
    • Stock
    • Politics
    • Business
    • Sports