The Federal Reserve reported that US industrial production rose 0.1% in July, following a similar pace in June. This modest gain, combined with the strongest ISM manufacturing reading since May 2022, suggests the factory floor is finding its footing. The ISM Manufacturing PMI climbed to 55.6 in July, surpassing the 50-point threshold that signals expansion. New orders within the same ISM report reached 56.7, indicating actively growing demand. Total industrial production in June stood at 102.6% of the 2017 average, representing a 1.1% year-over-year increase. Despite capacity utilization holding steady at 76.1%, American industry still has a meaningful amount of slack, allowing growth to continue without immediately running into supply constraints or triggering inflationary pressure. The Federal Reserve will release August industrial production figures in mid-September, which could signal a trend if three consecutive months of 0.1% growth are reported.
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