U.S. factory production jumped in July as production of motor vehicles and auto parts surged 10.1 percent, data published on Friday by the Federal Reserve showed. Industrial output jumped 0.4 percent, the same as in June.
Economists in a Reuters poll had expected the industrial output to jump 0.3 percent. Manufacturing production grew 1.0 percent, the most since February according to the Fed. Analysts had forecasted manufacturing production to expand 0.4 percent.
Production in mines jumped 0.3 percent, the ninth straight month of increases, while utility production plunged 3.4 percent owing to the moderate July weather that weighed on demand for air conditioning.
Meanwhile, the British economy continued with its growth momentum in the April-June quarter, surging 0.8 percent. This matched the figure given in the preliminary report in July and also matched the growth rate recorded in the first quarter.
When compared with the second quarter of 2013, the gross domestic product rose 3.2 percent, compared with 3.1 percent in the preliminary report. This was the fastest annual expansion since the end of 2007, reported the Office for National Statistics. Economists had expected the economy to expand 0.8 percent quarterly and 3.1 percent on an annual basis.
The ONS disclosed that the strong construction sector was the main reason why the annual growth rose. The report also showed that the economy was 0.2 percent stronger than it was in the first quarter of 2008, its best performance just before the financial crisis.
Manufacturing industry rose 0.2 percent in the second quarter, while the construction sector stalled. The services industry rose 1.0 percent, the fastest pace on a quarterly basis since the July-September quarter of 2012. In June only, the services industry expanded 0.3 percent in June from a month earlier and by 3.6 percent from the previous year, the quickest expansion since early 20008.To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at email@example.com