U.S. industrial production came in hot in August, with gains in mining output and defense production contributing to an upside surprise.

The index for industrial production rose by 0.4 percent in August after advancing by 0.7 percent in July, the Federal Reserve reported Friday. Total production increased to 103.5 percent of its 2017 level, 0.2 percent above where it was the year before.

The consensus estimate for August had been for a 0.2 percent increase. Production has beaten expectations every month since April.

The operating level for mines, factories and utilities also advanced in August, rising to 79.7 percent of total capacity from 79.5 percent in July and 79 percent in June.

Mining output was 3.9 percent ahead of its level last year, driven by a 3 percent increase in oil and gas extraction. Defense and space equipment manufacturing rose 3.5 percent in August and was up 10.4 percent compared to last year.

Chemical production is also markedly higher from where it was a year ago at a 5.3 percent rise.

The August increases were offset by a 5-percent drop in the production of motor vehicles and parts. Production of apparel and leather was down 3.5 percent, textiles were down 2.7 percent, and plastics and rubber were down 1.3 percent to fall 6.6 percent lower on the year.

The latest numbers come against a backdrop of efforts by Congress and the Biden administration to reinvigorate the U.S. industrial base as part of a transition to a more environmentally friendly economy.

Major pieces of legislation passed during the first half of the Biden administration, when Democrats controlled both chambers of Congress, have provided billions in tax credits to industries ranging from automobiles to heating and cooling.

The new laws, which span the Inflation Reduction Act, the CHIPS and Science Act and the Bipartisan Infrastructure Law, have contributed to a sizable increase in spending on the construction of new manufacturing facilities in the U.S.

Manufacturing construction spending has more than doubled its highest level in the previous decade, despite recently tapering off.

Business experts caution it will take time to see this investment translate into changes in U.S. manufacturing and industrial output.

“U.S. manufacturing construction is booming, but U.S. manufacturing output writ large has actually contracted slightly this year,” John Murphy, a vice president with the U.S. Chamber of Commerce, told The Hill.

​Business, News, federal reserve, industrial production, US economy U.S. industrial production came in hot in August, with gains in mining output and defense production contributing to an upside surprise. The index for industrial production rose by 0.4 percent in August after advancing by 0.7 percent in July, the Federal Reserve reported Friday. Total production increased to 103.5 percent of its 2017 level, 0.2…