July industrial production rises 0.2%, below estimates

Summary

Rick Santelli reports that July industrial production rose 0.2%, below the 0.3% estimate, but June was revised up to a 0.3% gain; capacity utilization hit its best level in a year. He highlights improving U.S. manufacturing bright spots and then shifts to global interest rates, noting multi-year highs in French, Japanese, and German sovereign yields amid heavy sovereign debt supply and concerns about investor absorption.

• July industrial production rose 0.2%, below the 0.3% expectation.
• June industrial production was revised up to a 0.3% gain.
• Capacity utilization came in at 76.3%, the best in one year.
• Manufacturing surveys are showing bright spots for the U.S. economy.
• Global sovereign yields are at multi-year highs in France, Japan, and Germany.
• U.S. debt crossed $40 trillion, adding to sovereign supply concerns.
• Investors have been absorbing debt issuance but may be getting squeamish.