U.S. manufacturing output stalled in June, weighed down by a drop in
durable-goods production. Factory output, which accounts for roughly
three-quarters of total industrial production, was flat month-on-month in June
after May was revised to +0.1%; economists had expected +0.1%. Overall
industrial production rose 0.1% for the second consecutive month; utilities and
mining each climbed 0.4%. Within durables, output of wood products, machinery,
electrical equipment and household appliances fell, while growth in computers &
electronics and defense & aerospace slowed. Other recent data show some
manufacturing pickup, but renewed U.S.-Iran conflict poses upside risk to energy
prices that could raise input costs and suppress demand.
