Article: Exports stimulate industrial growth <> Manufacturing beats weak expectations

Manufacturing companies have ratcheted down with the economy, although U.S. industrial output rose in July at a slightly better pace than expected, reports released Friday show.

The Federal Reserve reported that industrial production edged up 0.2% last month, half the pace of the 0.4% gain in June but surpassing analysts' expectations for flat production in July.

The modest increases in June and July production followed three straight monthly declines. Manufacturing has been battered by the prolonged slump in housing and the multiple problems in the automotive industry. Many economists viewed the slight strength in the past two months as temporary, given what's ailing the broader economy.

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