02:19 PM EDT, 07/16/2025 (MT Newswires) -- Industrial production rose more than expected in June to mark the first gain in four months as utilities' output swung into positive territory, data from the Federal Reserve showed Wednesday.

Industrial output grew by 0.3% in June after remaining flat for two consecutive months and falling in March. The consensus was for a 0.1% June increase in a survey compiled by Bloomberg.

The index for utilities rose 2.8% last month after a 2.5% drop in May, driven by higher output of power companies.

Manufacturing output growth slowed to 0.1% in June from 0.3% the month before. Within durables, the production of electrical equipment and appliances shrank 2.5%, while the motor vehicles and parts output fell 2.6%.

"Although manufacturing is holding up well so far, factories are likely to face challenging times ahead amid heightened uncertainty from trade policies, slowing US and global demand, and still-elevated borrowing costs," said Priscilla Thiagamoorthy, senior economist at BMO Capital Markets.

Two recent surveys painted a mixed picture of the US manufacturing sector for June, with Institute for Supply Management data showing a fourth straight monthly contraction and S&P Global ( SPGI ) indicating faster expansion month on month.

Earlier this month, US President Donald Trump sent letters to trading partners outlining new tariff rates that will take effect on Aug. 1.

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