US industrial production increased less than expected in July as manufacturing growth decelerated, Federal Reserve data showed Tuesday.
Industrial production rose 0.2% last month, following a 0.3% increase in June, the Fed said. The consensus was for a 0.3% increase for July in a survey compiled by Bloomberg.
Manufacturing output increased 0.2% last month, following a 0.3% gain in June and matching Wall Street's views.
Durable manufacturing production increased 0.7% in July, with most categories seeing a rise of more than 1%, according to Fed data.
"The details were robust for the most part," BMO Capital Markets Senior Economist Priscilla Thiagamoorthy said in a note.
Nondurable goods production dropped 0.4% last month, with increases in the output of textile and product mills and petroleum and coal products more than offset by drops in other categories, according to the Fed.
Mining output rose 0.2% in July, while utilities grew 0.5%, with the electric component seeing a similar increase, the data showed.
"Overall, the report points to a factory sector that continues to expand amid the (artificial intelligence) buildout," Thiagamoorthy said.
Earlier this month, two separate surveys showed US manufacturing sector continued to grow in July, with Institute for Supply Management data indicating the fastest expansion rate in more than four years and S&P Global (SPGI) signaling steady growth pace.
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