REUTERS/Adam Fenster
This marks the sixth straight monthly gain in industrial production.
The Fed's latest report was expected to show production rose 0.3% over last month.
June's report was revised up to show production growth of 0.4% against a prior reading for 0.2%.
Capacity utilization for July came in at 79.2%, in-line with the 79.2% that was expected.
Manufacturing output in July rose 1% in July, the largest increase since February.