Industrial production in the US increased 0.2 percent in August after advancing 0.9 percent in July, according to the US Federal Reserve. Additionally, manufacturing rose 0.5 percent in August. Capacity utilization for total industry, on the other hand, rose to 77.4 percent, up 1.9 percent year-on-year but 3 percentage points below its long-run (1972-2010) average.
"The August report on industrial production showed that the US manufacturing sector is at a crossroads, caught between a production rebound from the Japanese earthquake and the worrisome slowing of US and global economic activity," said Cliff Waldman, economist for the Manufacturers Alliance/MAPI.
"Output gains in electrical equipment as well as motor vehicles and parts contributed to the solid August performance, likely a post-tsunami rebound as the supply chains in both sectors begin functioning normally," Waldman added. However, he concluded, "the most likely near-term course for the US manufacturing sector is positive but slowing growth."