American factories boosted production at a faster pace in July led by strong gains in automobile output, signaling a pickup in the world's biggest economy, boosting the case for the US Federal Reserve to start raising interest rates for the first time in nine years, in the near-term.
Factory production, which makes up about 75 per cent of US industrial output, climbed 0.8 per cent in July 2015 from the previous month, when it declined a revised 0.3 per cent, the Federal Reserve reported on Friday.
Analysts were expecting a 0.4 per cent gain in manufacturing output in July from June.
Manufacturing makes up about 12 per cent of the US economy.
Total motor vehicle output soared 10.6 per cent in July 2015, a sign that domestic demand is more than countering the slowdown in overseas markets as a stronger dollar and turmoil in China weighs.
Overall output at US mines, factories and utilities climbed by 0.6 per cent in July 2015 from the previous month as oil drilling notched up its maiden increase since last September.
Oil and gas well drilling climbed by 1.3 per cent in July 2015 after registering a 4 per cent drop in June despite a continued slump in oil prices.