Industrial Production Jumps 0.9% in July

Industrial production jumped 0.9% in July, the largest gain this year, as automobile manufacturing surged, the Federal Reserve said Tuesday.

The measure of output from factories, mines and utilities followed a revised 0.4% increase in June that was more than previously estimated.

The increase surpassed economists’ forecasts of a 0.5% rise, Bloomberg reported.

Factory production, which makes up three-quarters of the total, rose 0.6%.

Production of automobiles and parts leaped 5.2%, while factory production excluding autos rose 0.3%.

Business equipment production increased 0.6%.

Capacity utilization, which measures plant output, rose to 77.5%.

Manufacturing accounts for about an eighth of the U.S. economy and the factory sector is one of trucking’s largest and most important customers.