Monday, August 19, 2013

Before the Bell: US industrial production

Washington-factories likely increased production only slightly in July held back by weakness in auto plants.

Economists are predicting that total industrial production with factories, mines and utilities, rose by 0.3 percent compared to June. Factory output rose the most important component, the unlikely 0.1 percent.

Summer delays in car factories, which are prepared for new model year cars were probably offset by strength in other areas of the manufacturing sector.

The Federal Reserve is to release Thursday the report at 9:15 EDT.

Factory output rose 0.3 percent in June and 0.2 percent in may after two months of declines. Economists say that the production may have started after a sluggish start of this year strengthening.

The Institute for supply management this month said factory activity showed its index U.S. factories increased production in July, was more workers and received an increase in orders. This activity helped a two-year-up from 50.9 in June raise index to 55.4 in July ISM manufacturing. A reading above 50 shows growth.

Stronger growth at U.S. factories could help an economy that expanded at a lackluster rate the last three quarters. Economic growth with an annual rate of 0.1 percent in the fourth quarter of last year. Growth improved only modestly to annual rate of 1.1 percent in the January-March quarter and 1.7 percent in the period from April to June.

Economists see more solid growth of around 2.5 percent in the second half of this year. They predict that the hard job receives rising sales and a brightening picture for Europe and other export markets will help to strengthen the U.S. economy.

In July, the unemployment rate on a 4 sank 1/2-year low of 7.4 percent, down from 7.6 percent in June. Employers added a modest 162,000 jobs; This year, the monthly average was 192,000.

Continuous success in the sale of residential property and construction growth in industries such as wood products, furniture and electrical appliances are fueled. And support healthy auto sales growth at auto plants and related industries such as metal parts and components.

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