US Industrial Output Unchanged In May

Industrial production in the United States was flat month-over-month in May of 2017, following an upwardly revised 1.1 percent rise in April and compared to market expectations of a 0.2 percent gain. Manufacturing went down 0.4 percent, offsetting a 1.6 percent rise in mining and a 0.4 percent gain in utilities.
Federal Reserve | Joana Taborda | joana.taborda@tradingeconomics.com 6/15/2017 1:38:55 PM
The index for durables fell 0.8 percent in May, while the index for nondurables edged up 0.1 percent; the output of other manufacturing (publishing and logging) moved up 0.3 percent. Almost all major industry groups within durables posted declines; within nondurables, a large gain in chemicals outweighed declines in most other industries.  

Mining has increased about 1.5 percent per month, on average, so far this year. Even so, output in May was still 10.0 percent below its peak in December 2014. The index for utilities advanced 0.4 percent, as higher output for gas utilities more than offset a small decrease for electric utilities.

Capacity utilization for manufacturing declined 0.3 percentage point in May to 75.5 percent, a rate that is 2.9 percentage points below its long-run average. Durables recorded a decrease in utilization, while nondurables and other manufacturing (publishing and logging) each posted increases. The operating rate for each group remained below its respective long-run average; the greatest shortfall was for other manufacturing. Utilization for mining moved up 1.1 percentage points to 84.3 percent but remained below its long-run average. The operating rate for utilities rose 0.3 percentage point to 76.6 percent.

Year-on-year, industrial production increased 2.2 percent, following a downwardly revised 2.1 percent rise in April. It is the biggest annual increase since January of 2015 as mining jumped 8.3 percent, manufacturing rose 1.4 percent and utilities edged up 0.1 percent. 

US Industrial Output Unchanged In May