Manufacturing Output in US Increases by Most in Four Months
WASHINGTON—U.S. factory production rebounded in June by the most in four months as the industry regained its footing after a fire-related disruption at an auto parts supplier, Federal Reserve data showed Tuesday.
The latest results indicate a steady advance in the nation’s manufacturing sector. Factory output climbed at a 1.9 percent annualized rate from April through June, marking the third straight quarterly increase. Automobile production jumped 7.8 percent in June from a month earlier when it plunged 8.6 percent after a major fire at a parts supplier. Last month’s increase was reflected in increased output of both consumer goods and business equipment.
While manufacturing is likely to keep expanding, headwinds are looming. Prices paid for materials are rising amid concerns about tariffs and supply constraints as businesses report having difficulty keeping pace with demand. Nonetheless, lower corporate and consumer taxes and a strong job market will remain positives for the business investment outlook.