Industrial Production Barely Gains While Manufacturing Output Remains Flat

Industrial production edged up 0.1% in May, while manufacturing output stayed the same after increasing 0.7% in April. At 97.9% of its 2017 average, manufacturing production moved up 1.4% from May 2025. Capacity utilization for manufacturing was 75.7%, unchanged from April but up 1.1% over the past year. Capacity utilization remained 2.5 percentage points below its long-term average from 1972 to 2025.

In May, production for market groups posted mixed results. Consumer goods production declined 0.5%, while business equipment output stepped up 0.6%. The growth in consumer durables (up 0.5%) was led by the output of miscellaneous goods rising 1.1%. Meanwhile, led by a decrease in the index for energy (down 1.1%), the index for consumer nondurables moved down 0.8%. Among business equipment, a 1.9% gain in transit equipment output led the advance. At the same time, the index for materials ticked up 0.3%, while the index for construction supplies rose 1.1% and the index for business supplies stayed the same.

Durable goods manufacturing increased 0.8% in May and 3.2% from the year prior. The largest monthly gain occurred in wood products (up 2.3%), while miscellaneous goods were the only industry group to not register an increase in May. Meanwhile, led by a 3.0% decline in petroleum and coal products, nondurable goods manufacturing stepped down 0.9% in May and 0.6% from May 2025.