US manufacturing gets boost from autos in June; total output flat

WASHINGTON: US manufacturing jumped in June on a surge in volatile auto production but total industrial output was flat, the Federal Reserve said Tuesday.

Even with the rebound in the latest month, manufacturing has lost ground this year, hurt by the ongoing trade wars and the slowdown in China and other trading partners.

Manufacturing jumped 0.4 percent compared to May, while total industrial production showed no change, according to the report, confounding economists' expectations for a 0.2 percent gain.

Manufacturing fell 2.2 percent in the April-June period compared to the second quarter of 2018, while total output lost 1.2 percent, in both cases the second consecutive quarterly decline, the report said.

"Manufacturing, therefore, is now in recession," Ian Shepherdson of Pantheon Macroeconomics said in an analysis before the data was released.

Motor vehicles and parts production surged 2.9 percent from May, the second month of solid gains, which followed two months of declines.

Mining output rose 0.2 percent, while petroleum and coal jumped 2.5 percent. Mining surged 8.9 percent in the latest quarter, its 11th consecutive quarterly increase.

But with milder temperatures in June easing demand for air conditioning, utilities output fell 3.6 percent

Industrial capacity retreated after a one month bump in May, falling back to 77.9 percent.