U.S. May Industrial Production - Underlying weakness since tariffs introduced
May industrial production was weaker than expected with a 0.2% decline and while manufacturing increased by 0.1% that is unimpressive after a 0.5% decline in April.
Manufacturing ex autos saw a second straight decline, by 0.3% after a 0.4% fall in April, signaling underlying weakness after the implementation of tariffs.
Weather-sensitive utilities fell by 2.9% after a 4.9% increase in April. Mining saw a marginal 0.1% increase after a 0.3% decline in April.
Durable manufacturing rose by 0.4% to reverse an April decline led by a 4.9% increase in autos and a 1.1% increase in aerospace and miscellaneous transportation equipment. Nondurable manufacturing fell by 0.2% after a 0.6% fall in April, a 2.2% rise in apparel after a 3.0% April fall providing some support.
Consumer goods fell by 0.2% despite strong gains in autos, home electronics and clothing. Business equipment rose by 0.8% on a 6.4% rise in transit with data negative elsewhere. Materials fell by 0.2%.
