U.S. industrial production posts modest May increase as manufacturing stalls |
U.S. industrial production rose 0.1% in May, according to Federal Reserve data, undershooting economists’ expectations for a 0.3% increase and slowing from April’s revised 0.9% gain. The modest increase reflected a mixed picture across the industrial sector, with manufacturing output flat during the month after a 0.7% rise in April, suggesting factory activity lost momentum following a stronger start to the spring. The overall increase was supported by a 1.3% rise in mining output, while utility production declined 0.4%. Industrial capacity utilization, a key measure of how fully companies are using their productive capacity, was unchanged at 76.2%, matching market expectations. The figures point to continued, but subdued, growth in U.S. industrial activity, with strength in the mining sector helping offset softer manufacturing performance.