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.
