In July, the industrial production (IP) index increased 0.7 percent compared to the previous month. The manufacturing subindex rose 0.5 percent month over month and is now up 0.2 percent year over year. The monthly rise in the manufacturing subindex was led by increases in motor vehicles and parts production and wood products production. On the heels of a modest rebound in oil and gas well drilling, the mining subindex rose 0.7 percent in July but remained subdued on a year-over-year basis, down 10.2 percent. The utilities subindex rose 2.1 percent from June and is up 3.5 percent compared to a year ago. Although the strength of the dollar and weak global demand continue to hamper industrial output, the July report suggests some possible firming in overall conditions.
