Manufacturing activity boosts US industrial production in May by 0.9% month-on-month

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Intermoney | US May industrial production shows muscle as it grew by a strong +0.9%m. We were taken by surprise by the solid data considering that the ISM manufacturing survey for May pointed to only a slight rebound, although other indicators pointed to some recovery. Manufacturing activity, the most relevant item, largely explained the figure, as it also rose by 0.9%, led by consumer goods (1.3%) thanks to the expansion of automobiles, household appliances and chemicals.

The production of commercial equipment rose for the first time in three months, while that of construction supplies rose slightly. What we could glimpse was the slower expansion of utilities (+1.6%) as warmer temperatures took their toll, as seen in the slower expansion of electricity and the negativity in natural gas production. Slightly more surprises were the +0.3% in mining as drilling rigs had declined in May.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.