U.S. Industrial Production, Manufacturing Readings Decline

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Meanwhile, here are the major economic headlines from the last week:

• According to the Federal Reserve, U.S. industrial production declined 0.5 percent in June, but advanced 0.7 percent at an annual rate for the second quarter as a whole. Manufacturing output moved down 0.3 percent in June, but was up 1.5 percent in the second quarter while the indexes for mining and utilities fell 0.2 percent and 2.6 percent, respectively, in June.
• July regional manufacturing readings have been soft. The Federal Reserve Bank of New York said manufacturing activity in its region was little changed in July. The general business conditions index fell six points to +1.1. The new orders index was little changed at +3.3, but the shipments index fell nine points to +13.4 and the unfilled orders and inventories indexes remained negative. The Federal Reserve Bank of Philadelphia’s general activity index also was largely unchanged at -13.5, but it was the bank’s 11th consecutive negative reading. The index for new orders declined five points to -15.9, the index’s 14th consecutive negative reading, and current shipments were down as well.
• U.S. housing starts fell eight percent between May 2023 and June 2023 and were down 8.1 percent between June 2022 and June 2023. Read the full report here.
• According to Statistics Canada, manufacturing sales rose 1.2 percent in May to $72.9 billion. Motor vehicle sales were 4.8 percent to $4.9 billion while sales of primary metals fell 6.9 percent to $5.2 billion.
• Wholesale sales in Canada rose 3.5 percent from April 2023 to May 2023 due to higher sales of machinery and equipment, miscellaneous goods, and motor vehicles and parts. It was the largest monthly increase since September 2021. Sales were up 3.8 percent from May 2022 to May 2023. Read the full report here.
• During the week that ended July 15, 228,000 individuals filed for federal unemployment benefits for the first time, a number that was down from 237,000 the week before. The four-week moving average of first-time claims also fell. The number of individuals who continued to receive benefits rose to 1.754 million during the week that ended July 8 from 1.721 million the week before. The four-week moving average of continuing claims declined, however.
• In other news: Sales of new vehicles in Canada increased 11.3 percent between April 2023 and May 2023 and 22.5 percent between May 2022 and May 2023; retail sales in Canada rose 0.2 percent to $66 billion in May due to increases in sales of new cars and at grocery stores; and existing home sales in the United States fell 3.3 percent between May 2023 and June 2023 and 18.9 percent between June 2022 and June 2023. Read that full report here.