Output at US factories, mines and utilities rose by a bigger-than-expected 0.8 per cent in June and capacity use also topped expectations in signs of a hot economy that could weigh on an inflation-wary Federal Reserve.
Capacity use rose to 82.4 per cent, the highest rate since 82.5 per cent in June 2000, the Federal Reserve reported today.
Analysts were expecting a 0.4 per cent gain in industrial production and a capacity use rate of 81.9 per cent. The 6.6 per cent rise in industrial production in the second quarter was the largest quarterly rise since a 7.7 climb in the fourth quarter of 1999.
The 82 per cent capacity use rate for the April-June quarter was the highest since an 82.6 use rate in the second quarter of 2000.
Manufacturing output in June rose at 0.7 per cent on gains in automotive production, while mining output jumped 1.2 per cent and utilities output climbed 0.7 per cent.
Manufacturing capacity use was 81.1 per cent, the highest since May 2000.