Industrial production rose 0.4 percent in June for its fifth consecutive monthly increase. Manufacturing output moved up 0.2 percent; although factory output has gone up and down in recent months, its level in June was little different from February. The index for mining posted a gain of 1.6 percent in June, just slightly below its pace in May. The index for utilities, however, remained unchanged. For the second quarter as a whole, industrial production advanced at an annual rate of 4.7 percent, primarily as a result of strong increases for mining and utilities. Manufacturing output rose at an annual rate of 1.4 percent, a slightly slower increase than in the first quarter. At 105.2 percent of its 2012 average, total industrial production in June was 2.0 percent above its year-earlier level. Capacity utilization for the industrial sector increased 0.2 percentage point in June to 76.6 percent, a rate that is 3.3 percentage points below its long-run (1972–2016) average.

U.S. Rig Count is up 505 rigs from last year's count of 447, with oil rigs up 408, gas rigs up 98, and miscellaneous rigs down 1 to 0. Canadian Rig Count is up 96 rigs from last year's count of 95, with oil rigs up 62, gas rigs up 35, and miscellaneous rigs down 1 to 0.

From 2012 through the end of 2015, debt was a significant source of capital for the producers included in the analysis, with the addition of a cumulative $55.3 billion in net debt. Since the beginning of 2016, however, these producers have reduced debt by $1.4 billion. The combination of higher equity and lower debt has resulted in the long-term debt-to-equity ratio, a measure of financial leverage, declining from 88% to 80% for the group of companies as a whole between the first quarter of 2016 and the first quarter of 2017.

One big reason is that natural gas prices have recovered from 20-year lows, nearly doubling since last year, according to S&P Global Market Intelligence.

The UK's first US LNG cargo will arrive at the Isle of Grain terminal on around July 8, according to shipping sources.

Natural gas net imports (imports minus exports) set a record low of 685 billion cubic feet (Bcf) in 2016, continuing a decline for the 9th consecutive year. In recent years both U.S. natural gas production and consumption have increased, although production has grown slightly faster, reducing the reliance on natural gas imports and lowering domestic prices.

Real gross domestic product (GDP) increased at an annual rate of 1.4 percent in the first quarter of 2017 , according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2016, real GDP increased 2.1 percent.

U.S. Rig Count is up 509 rigs from last year's count of 431, with oil rigs up 415, gas rigs up 95, and miscellaneous rigs down 1 to 0. Canadian Rig Count is up 113 rigs from last year's count of 76, with oil rigs up 77, gas rigs up 37, and miscellaneous rigs down 1 to 0.

South Korean companies announced plans to import more American shale gas and build new factories in the U.S. as the two countries' leaders prepare to hold summit talks in Washington where trade is expected to be a key issue.

U.S. crude oil and petroleum product gross exports have more than doubled over the past six years, increasing from 2.4 million barrels per day (b/d) in 2010 to 5.2 million b/d in 2016. Exports of distillate, gasoline, propane, and crude oil have all increased, but at different paces and for different reasons.

All in all, in our judgement, the U.S. economic model is not working as well as it could in generating broadly shared income growth.

Total petroleum deliveries in May moved up by 4.9 percent from May 2016 to average 20.1 million barrels per day. These were the highest May deliveries in 10 years, since 2007, and the highest deliveries for any months in over 9 years, since January 2008. Compared with April 2017, total domestic petroleum deliveries, a measure of U.S. petroleum demand, increased 2.7 percent. For year-to-date, total domestic petroleum deliveries moved up 1.5 percent compared to the same period last year.

Wind and solar developers together have added about 40 gigawatts to the U.S. grid over the past two years, bringing total installed wind and solar capacity to about 120 gigawatts.

U.S. Rig Count is up 520 rigs from last year's count of 421, with oil rigs up 428, gas rigs up 93, and miscellaneous rigs down 1 to 0. Canadian Rig Count is up 94 rigs from last year's count of 76, with oil rigs up 62, gas rigs up 33, and miscellaneous rigs down 1 to 0.

In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1 to 1-1/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.