Industrial Production Rises in May From a Lower April Base

Summary Short-handed and waiting for deliveries, manufacturing is not growing as fast as it could be. Still, industrial production rose 0.8% in May which exceeded expectations, though a downward revision to prior data saps the joy from the beat. Output in high-tech industries continues to lead the way.

Supply Chains Still Holding up OutputOverall industrial production notched a 0.8% gain in May, which was slightly better than expectations. However, the fact that April’s initially reported gain of 0.7% was revised lower to a pickup of just 0.1% spoils the celebration. The slightly better outturn for May, as well as most of the downward revision, is attributable to manufacturing production which comprises about three-quarters of all industrial output. Manufacturing output rose 0.9% in May after a revision to April’s output figure changed a 0.4% gain into a 0.1% decline. READ FULL ARTICLE >>