U.S. industrial output advanced in July, as American factories operated at their highest capacity in more than three years, a Federal Reserve report on Tuesday showed.
The Fed said overall output of U.S. factories, mines and utilities rose 0.4 percent, while capacity utilization edged up to 77.1 percent. However, those were both below Wall Street projections of a 0.5 percent gain in production and a larger rise to 77.5 percent operating rate.
June data was revised to an even weaker showing than previously thought. Output was revised to a 0.5 percent drop from the previously reported 0.3 percent decline, while capacity in use was revised to 76.9 percent from 77.2 percent.
The brightest spot in the July report was manufacturing, which accounts for more than four-fifths of overall industrial output. Factory production rose 0.6 percent in July after June's 0.2 percent drop and factories operated at 76.3 percent of full capacity, their fastest pace since 76.6 percent in April 2001.
The other two components of industrial production went in opposite directions. Mining output rose by 1.2 percent while utilities production dipped for a second straight month, falling 2.0 percent.
