Monday, 5 September 2011
Japan Recovery Get boost U.S. Production
Industrial production in July soared 0.9%, according the Federal Reserve. The increase was about double the 0.4% increase economists had expected. Briefing.com had been looking for a 0.1% increase.
After a slight 0.2% uptick seen in June, the latest jump in production suggests that the industrial sector is off to a strong start for the second half of 2011. The numbers also bode well for economic growth since the industrial sector accounts for almost 20% of the country's gross domestic product.
Most of the increase in production in the past three months was due to rising output from manufacturers. In July alone, manufacturing output rose by 0.6%. Feeding into that, production in the auto industry jumped a whopping 5.9%, indicating a marked rebound from disruptions that were caused by the Japanese earthquake.
After a slight 0.2% uptick seen in June, the latest jump in production suggests that the industrial sector is off to a strong start for the second half of 2011. The numbers also bode well for economic growth since the industrial sector accounts for almost 20% of the country's gross domestic product.
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Most of the increase in production in the past three months was due to rising output from manufacturers. In July alone, manufacturing output rose by 0.6%. Feeding into that, production in the auto industry jumped a whopping 5.9%, indicating a marked rebound from disruptions that were caused by the Japanese earthquake.
