Auto industry increases manufacturing output in US
U.S. industrial output reached its strongest rate of growth during the month of July. According to The New York Times, this was largely due to a notable upswing in automotive production.
"Industrial production increased by .6 percent."
Overall, industrial production increased by .6 percent last month, bouncing back from the nearly stagnant month of June, where only .1 percent growth was achieved. The New York Times explained that the industrial production gains were caused by a 10.6 percent growth in automotive manufacturing. This expansion of motor vehicle production, which was the largest recorded growth in six years, also contributed to a .8 percent increase in general factory production, reported the source.
The Wall Street Journal noted that these numbers reflect an increased demand for American cars and trucks, though they aren't quite as impressive as they seem. Seasonal factors and temporary shutdowns are partially responsible for the numbers - they aren't purely production figures. Despite these additional influences, however, July's production numbers still represent a growth of 9 percent over last year's figures.
The producer price index for final demand increased by .2 percent in July as well, noted The New York Times. This was largely due to the cost of services increasing. The source reported that inflation will likely remain minimal, however, due to the dollar gaining strength against other major players in the global economy. For example, China has started to devalue its money, which will likely help keep U.S. currency competitive on an international scale. Additionally, rapidly falling oil prices are expected to continue being influential in controlling inflation.