Manufacturing Lifts Industrial Production Higher

A big snap back in manufacturing helped to lift industrial production 0.6 percent higher in June in a strong gain that hits Econoday's consensus. Manufacturing's 0.8 percent gain also hits Econoday's consensus, a big rebound that reverses a plunge in the prior month that was tied to supply snags following a fire at a Michigan parts supplier. Motor vehicle production surged 7.8 percent in June following May's 8.6 percent drop. Hi-tech also had a strong June with production up 1.4 percent.

Outside of manufacturing, mining once again is very positive with production up 1.2 percent. This helped to offset a 1.5 percent decline in utility output, one likely tied to June's mild weather.

With the manufacturing component back on track, factory data look to be a very strong highlight of the second-half economy. Watch on Thursday's calendar for advance data on July's factory conditions from the Philly Fed report.

Note that traditional non-NAICS numbers for industrial production may differ marginally from NAICS basis figures.