Industrial Production Posts Biggest Rise in Six Months

U.S. industrial output in July posted its biggest gain since January, boosted by a third straight monthly rise in factory activity, the Federal Reserve reported Friday.

Production at factories, mines and utilities jumped 0.5%, after being unchanged in June. The proportion of industrial capacity in use rose to 74.5% from June's 74.2%.

Analysts had expected production to post a 0.1% rise and the gauge of capacity use to come in at 74.3%, Reuters said.

With retail sales showing the biggest gain in four months in July and inventories near record lows compared with sales, companies are having to ramp up production, Bloomberg said.

Work at factories, which accounts for almost 90% of industrial production, rose 0.2% last month after rising 0.3% in June.

Production of autos and parts rose 3.5%, while business equipment production, which includes transportation and information processing equipment, rose 0.4%.

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