US industrial growth surpasses the median Bloomberg survey estimate

US industrial production saw its largest back-to-back gains since late 2021, with a 0.6% increase in June following a revised 0.9% gain in May, according to Federal Reserve data.

This growth surpasses the median Bloomberg survey estimate of a 0.3% increase. Year-on-year, industrial production rose by 1.6% in June, the fastest pace since November 2022.

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US Industrial Growth in Focus

It marked the second consecutive month of expansion after four months of contraction in 2024. Manufacturing output increased by 1.1% year-on-year, while the mining sector declined by 0.6%. Utilities saw a significant rise of 7.9%.

Month-on-month, growth slowed to 0.6% in June from 0.9% in May but still exceeded expectations. The recovery aligns with the US S&P Global Manufacturing PMI, which rose to a three-month high of 51.6 in June, driven by improving new orders and easing inflationary pressures.

The outlook for global manufacturing optimism and industrial production is positive for the second half of 2024, aided by the potential easing of monetary policy in developed markets.

Source: MIDF