US industrial production unchanged in July

US industrial production was unchanged in July, the US Federal Reserve has said, falling short of analyst expectations of 0.3 per cent growth.

The month before production had increased by a downwardly revised 0.2 per cent.

This month, a 2.1 per cent monthly rise in mining output more or less offset a 2.1 per cent fall in utilities output. Manufacturing output overall fell by 0.1 per cent - the first monthly drop since April.

Paul Dales, senior US economist at Capital Economics, said the news will do "little to dent the improving economic outlook, especially when the survey evidence has been more upbeat".

... we are relatively optimistic on the outlook for industry. The survey evidence, such as this morning’s Empire State manufacturing index (8.2 in August vs. 9.5 in July), has remained positive. And overseas demand appears to be strengthening. As such, industry will soon be growing at a respectable rate.

In any case, the fall in initial jobless claims last week, to a 6-year low of 320,000 from 335,000 the week before, suggests that growth in other parts of the economy is helping the labour market.