US Industrial Production Sees Modest Growth in June

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Mumbai, 17 July 2025. A recent report from the Federal Reserve reveals a steady, if unspectacular, uptick in US industrial production for June, driven largely by a robust rebound in utilities output. The data, released on Wednesday, paints a picture of an economy trudging along, with some sectors showing resilience while others falter.

According to the Fed, industrial production rose by 0.3 per cent in June, surpassing economists’ expectations and growing at a 1.1 per cent annualised rate in Q2. This follows a revised figure showing no change in May, suggesting a cautious but positive shift. The utilities sector was the standout performer, surging by 2.8 per cent in June following a 2.5 per cent drop in May. This volatility in utilities reflects the sector’s sensitivity to external factors, though the report did not elaborate on specific causes.

Manufacturing output, a critical gauge of industrial health, edged up by 0.1 per cent in June, following a revised 0.3 per cent gain in May. Meanwhile, mining output dipped by 0 per cent, reversing a 0.1 per cent gain in May. These mixed results highlight the uneven recovery across America’s industrial landscape.

Capacity utilisation edged up to 77.6 per cent in June from 77.5 per cent in May, remaining about 2 percentage points below its long-run average. Utilities sector utilisation rose to 70.1 per cent, manufacturing utilisation increased to 76.9 per cent, and mining utilisation fell to 90.6 per cent.

The broader context of this data is worth noting. While the US economy shows signs of steadying, global uncertainties and domestic policy debates continue to cast shadows. Unlike the UK, where the Labour government’s economic strategies have drawn criticism for their handling of growth, the 

The US appears to be navigating a more stable path, albeit with room for This incremental progress may offer some reassurance to markets, but it also signals the need for sustained policy focus to bolster manufacturing and mining. For now, the US industrial engine keeps humming, just don’t ask it to roar.