U.S. May Industrial Production - Pause in a positive trend
May industrial production with a 0.1% increase and manufacturing unchanged was on the weak side of expectations. Near term revisions were positive but revisions further back were negative. Capacity utilization at 76.2% was as expected and the highest since July 2025.
Mining saw an increase of 1.3% and this may have been encouraged by higher energy prices, though energy companies are cautious over increasing output and are likely to remain so. The mining increase outweighs a modest 0.4% decline in utilities.
The unchanged manufacturing output is less impressive than May’s ISM manufacturing index had implied and adds to hints in the Empire State survey that June may see some slowing.
Auto output increased but manufacturing output ex autos was also unchanged. Despite the flat month, manufacturing trend remains positive after a strong 0.7% rise in April.
