Industrial production in the U.S. took off in June for the second consecutive month, fueled by a jump in auto sales and a desperate need for air conditioning as temperatures soared.
Output surged by 0.9 percent last month, following a significant rise in May. This three times as much as Wall Street was expecting.
Gas and electric utilities experienced a 2.8 percent boost in production as Americans cranked up their ACs to combat the blistering heat.
The Federal Reserve reported a 1.7 percent rise in auto production, contributing to the overall increase. However, manufacturing production, excluding the auto sector and utilities, lagged behind, indicating a still sluggish factory sector.
Capacity utilization climbed to 78.8 percent from 78.3 percent. Still, it remains about a full percentage point below its historic average, indicating some idle capacity due to sluggish business.
