Input Stories

Industrial production fell in May, the Federal Reserve said on Tuesday.

The numbers: While overall industrial production fell 0.2% in May after rising 0.1% in April, manufacturing output inched up 0.1%.

• The growth in manufacturing output reflects a 4.9% gain in the index for motor vehicles and parts, which decreased 2.3% in April.
• Excluding motor vehicles and parts, the index for manufacturing declined 0.3%.

Yes, but … At 103.6% of its 2017 average, last month’s industrial production came in at 0.6% above the May 2024 reading.

• And mining output, which comprises natural gas and oil, edged up 0.1%.

Capacity utilization: Capacity utilization—a measure of potential output—dipped to 77.4%, a rate 2.2 percentage points below the long-run average from 1972 to 2024 and the lowest rate since January.

• Meanwhile, capacity utilization for manufacturing was unchanged in May at 76.7%, a rate that is 1.5 percentage points below its long-run average.

In related news: Manufacturing activity in New York state continued to decline in June, according to this month’s Empire State Manufacturing Survey.

• The general business conditions index declined nearly seven points to -16.0.
• After rising above zero in May, the state’s new orders index fell to -14.2, while the index for shipments declined to -7.2.