Widget Image
Follow PPD Social Media
Follow Us:
Thursday, August 6, 2020
HomeNewsEconomyIndustrial Production Rose 1.4% in May Led By Manufacturing Rebound

Industrial Production Rose 1.4% in May Led By Manufacturing Rebound

Two engineers — one male and one female — in a manufacturing factory discussing operations in industrial production. (Photo: AdobeStock)

Washington, D.C. (PPD) — The Federal Reserve reported industrial production rose 1.4% in May after posting the largest monthly drop in the 101-year history of the index in April. That was the direct result of factories slowing or suspending operations to mitigate the spread of the Chinese Coronavirus (COVID-19) throughout the month.

Forecasts for industrial production ranged from a low of -2.0 to a high of 12.3. The consensus forecast was 2.9.

Two engineers — one male and one female — in a manufacturing factory discussing operations in industrial production. (Photo: AdobeStock)
Two engineers — one male and one female — in a manufacturing factory discussing operations in industrial production. (Photo: AdobeStock)

Manufacturing output led the rebound, gaining 3.8% in May on the heels of many factories at least partially resuming after suspending operations in response to COVID-19. Most major industries posted gains, with the largest coming from motor vehicles and parts.

Forecasts for manufacturing ranged from a low of -13.0 to a high of 15.7. The consensus forecast was 3.8. The indexes for mining and utilities offset manufacturing by falling 6.8% and 2.3%, respectively.

At 92.6% of its 2012 average, the level of total industrial production was 15.3% lower in May than it was a year earlier. Capacity utilization for the industrial sector increased 0.8 percentage point to 64.8% in May, a rate that is 15.0 percentage points below its long-run (1972–2019) average and 1.9 percentage points below its trough during the Great Recession.

Forecasts for the Capacity Utilization Rate ranged from a low of 60.0 to a high of 75.7. The consensus forecast was 64.9.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial