|Month over Month||0.0%||-0.1%||0.4%|
|Year over Year||1.0%||0.6%||2.8%|
June industrial output excluding construction slipped 0.1 percent after increasing 0.4 percent last time. Manufacturing output dropped 0.7 percent after gaining 0.7 percent last time. On the year, industrial output was up 0.6 percent while manufacturing was up 0.8 percent. Manufacturing output declined 0.5 percent over the last quarter while industrial output lost 0.7 percent.
Output declined in mining, quarrying, energy & water supply (down 1.7 percent), in the manufacture of transport equipment (down 1.9 percent) and more sharply in the manufacture of coke & refined petroleum products (down 11.6 percent). It decreased slightly in other manufacturing (down 0.3 percent). Conversely, output increased somewhat in the manufacture of electrical & electronic equipment; machine equipment (0.3 percent) and in the manufacture of food products & beverages (0.2 percent).
Manufacturing output of the second quarter of 2015 increased compared to the second quarter of 2014 (0.8 percent on the year). For that same period, overall industrial output also was up (1.0 percent on the year).
Industrial production measures the physical output of the nation's factories, mines and utilities. Manufacturing is seen as the best guide to underlying developments as some sectors can be very volatile and have a misleading impact on the total industrial production reading.
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
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