NEW YORK ( TheStreet) -- U.S. industrial output recorded its best gain in seven months in July as the auto sector bounced back from supply disruptions caused by the Japanese quake in March. July industrial output rose 0.9%, doubling economists' expectations. Manufacturing activity was up 0.6%, led by a 5.2% surge in motor vehicles production.Consumer spending expanded 0.8% in July to $88.4 billion -- the highest increase in two years after declining in the prior month. Savings fell to 5% in July from 5.5% earlier. Notably, spending increased in the durable-goods category such as cars and electronic appliances. For July, orders for motor vehicles and parts surged 11.5%, the highest since January 2003.
5 Auto Stocks to Watch
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts