MAY INDUSTRIAL PRODUCTION DOWN 0.2%, CAPACITY UTILIZATION 79.4%
May industrial production fell 0.2% in May, below analysts’ expectations of a 0.1% increase. That followed an unrevised 0.7% decline in April. It was the first time there were 2 consecutive monthly declines in industrial production since late 2006.
Consumer goods production declined 0.2% despite the first increase in auto production this year. Home electronic production was also up and helped to offset declines in appliances and furniture, clothing and paper products. Production of business equipment was unchanged overall as a small increase in information equipment helped offset weakness in defense and transit equipment.
On a y-o-y basis, industrial production was down 0.1% from last May – the annual decline since Jun-02.
The index of manufacturing output was unchanged in May following a 0.9% decline in April but the utilities index fell 1.8%, pulling down the overall IP number. Mining showed a small 0.1% gain.
Capacity utilization was 79.4% in May, its lowest point since late 2004. Crude capacity utilization was up 1 percentage point to 89% but capacity utilization in the finished goods industries was only 75.9%.