WASHINGTON — U.S. automakers rebounded in July to boost production by the most since the Japan crisis. But builders broke ground on fewer single-family houses, leaving home construction at depressed levels.
The mixed data suggest that the economy remains fragile but is not on the cusp of another recession.
Overall industrial production, including output by utilities, mines and factories, rose 0.9 percent last month, the largest gain this year, the Federal Reserve said Tuesday.
Factory output, the biggest component of industrial production, climbed 0.6 percent. It was the largest increase since Japan’s March 11 earthquake disrupted supply chains and slowed production at some U.S. auto plants.
The auto industry accounted for nearly all of the factory-production gains. Motor vehicles and parts jumped 5.2 percent. Excluding that category, factory output grew 0.2 percent.
Also driving industrial production higher was an unseasonably hot summer. That led people to leave their air conditioners running. Utility output jumped 2.8 percent. Mining output also increased.
The Commerce Department said builders began work on a seasonally adjusted 604,000 homes last month, a 1.5 percent decrease from June. That’s half of what economists say must be built for a healthy housing market.
