"Manufacturing is still moving in the right direction"
- Michael Carey, chief economist for North America at Credit Agricole CIB
U.S. factory output rose by more than expected, a sign the economy is expanding. Industrial production increased by 0.6 per cent in July, after adding 0.1 per cent the previous month, said the Federal Reserve on Wednesday.
"Manufacturing is still moving in the right direction," said Michael Carey, chief economist for North America at Credit Agricole CIB in New York.
"Domestic demand has been holding up, and there are some areas that continue to do well, such as autos," said Carey. "Inflation is well under control and not something the Fed is worried about."
Also Wednesday, the Bureau of Labor Statistics said inflation was little changed in July, compared to the previous month. Year-over-year inflation fell from 1.7 per cent in June to 1.4 per cent in July.
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