US industrial output came in higher than expected in July, nearly half a percentage point above analysts’ forecasts.
Industrial output rose by 0.7 percent last month, according to Federal Reserve data released on Tuesday. The figure represents a jump from June’s 0.5 percent increase, which was later revised down to 0.4 percent.
However, other figures were less positive – the US Consumer Price Index reading rose by just 0.1 percent in July, below the 0.2 percent increase for the three months before, with inflation sticking at 1.6 percent. The Fed has a 2 percent inflation target but is struggling to hit it.
These weaker figures are likely to dampen hopes of the Federal Reserve raising rates later this year – despite comments today from Fed policymaker William Dudley that it may be “possible” to raise rates in September.