U.S. industrial production growth likely remained flat in July, expected to grow 2.5 pct in H2

U.S. industrial production growth is expected to have remained flat in July. In the previous month, industrial production grew 0.4 percent as both manufacturing and mining overcame a drop in utilities output. Mining activity has played a role in holding back industrial production growth since the middle of 2015, a trend that has reversed in the past few quarters, noted Wells Fargo in a research report.

The subdued rate of manufacturing output has negatively impacted industrial output, held back partially because of soft global growth. With mining activity rebounding and global economic data starting to surprise to the upside, the outlook for industrial production is likely to be marginally more positive.

“We expect industrial output rose 0.4 percent in July. In the second half, we expect output will expand at an average of 2.5 percent on an annualized basis”, said Wells Fargo.

If the current trends continue, this year would mark the first year-on-year growth in industrial output since 2014, added Wells Fargo.

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