U.S. industrial production likely to have risen in June, says Wells Fargo

U.S. industrial production is expected to have risen in June after it came in flat in May. According to a Wells Fargo research report, the U.S. industrial production is expected to have grown 0.4 percent. The flat reading for industrial output in May was due to increased production in utilities and mining countering a 0.4 percent drop in manufacturing output.

Manufacturing output dropped in two of the past three months, bringing the sector’s three-month annualized growth rate to zero. The deceleration in auto production was just partially at play, as factory output still dropped 0.2 percent when motor vehicles and parts were excluded, noted Wells Fargo.

The manufacturing production report for May was another hard data point implying that the factory sector is growing at a much slower rate than indicated by recent survey measures. Orders and shipments data releases in recent weeks reiterated that story. However, the ISM manufacturing again implied a stronger rate of growth in June. The projection contains a healthy degree of scepticism for the factory sector; however, a gradual lift in activity is likely as the hard data continue to suggest, added Wells Fargo.

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