Production at U.S. factories increased in July for the first time in three months, propelled by a pickup in motor vehicle output that masked more mixed results in other categories, Bloomberg News reported. The 0.7% increase in manufacturing production followed a revised 0.4% June decline, Federal Reserve data showed Tuesday. Including mining and utilities, total industrial output climbed 0.6% last month. Despite firming last month, manufacturing has moderated and risks losing more momentum as businesses contend with an inventory overhang and an easing in domestic demand for goods. Recent factory surveys have illustrated a pullback in orders, while weaker export markets amid a strong U.S. dollar represent another headwind. A New York Fed survey on Monday showed manufacturing in the state suffered its second-largest monthly decline on record as bookings and shipments plunged. Separate regional data and national figures over the next week will help shed more light on the extent of the industry’s pullback.
