Industrial Production Rises 0.8% in June

July 16, 2002 8:45 AM, EDT

Industrial production in the United States rose 0.8% in June – its largest increase since October 1999, the Federal Reserve reported Tuesday.

Increased production can boost orders for goods and increase the demand for trucking services.

The increase in work done at U.S. factories, mines and utilities was larger than expected, Bloomberg reported, and followed a 0.4% increase in May. Manufacturing production – which accounts for 90% of the report – increased 0.7% in the month.

The increases in total production and for manufacturing were the sixth in a row.

The Fed said the rise was due to factories turning out more vehicles and utilities increasing power generation.

The report also found factory usage was up to 76.1% in June – a larger than expected gain, Bloomberg said.

conomists speculated that a weakening dollar overseas has helped boost exports of manufactured goods, Bloomberg reported.