Key facts
- US manufacturing output was unchanged in May.
- This followed a revised 0.7% increase in April.
- Economists had predicted a 0.2% rise.
- Output of durable goods increased by 0.8%, while non-durable goods production fell by 0.9%.
- Total industrial production rose 0.1% in May.
- Capacity utilization for manufacturing remained unchanged at 76.7%.
U.S. factory production was unexpectedly unchanged in May, failing to meet economists' forecasts for a 0.2% increase. This flat reading followed a revised 0.7% jump in April. The Federal Reserve reported that while the output of durable goods, such as motor vehicles, increased by 0.8%, this strength was offset by a 0.9% decline in non-durable goods like food and textiles.
Overall industrial production edged up 0.1% in May, with mining output rising 1.3% and utilities decreasing 0.4%. Capacity utilization for total industry rose to 76.2%, which is 3.2 percentage points below its long-run average. Manufacturing capacity utilization remained unchanged at 75.7% according to the Federal Reserve's data, though another source reported it as 76.7%, 1.5 percentage points below its long-run average.