Manufacturing production crept up 0.1% in May, following a gain of 0.9% in April, according to new data from the Federal Reserve.
Durable vs. nondurable: While durable goods production rose 0.3%, the nondurable goods sector declined 0.1%.
Economic context: Since April of last year, when manufacturing posted its highest production numbers since the end of 2018, output in the sector has declined 0.7% due to geopolitical tensions and a shakier economy.
What’s next? Production is forecasted to fall 0.6% in 2023 but expand 1.2% in 2024.
Mixed data: About half of the manufacturing sectors measured saw a decline in production, and half saw an increase. Those on the upswing included:
- Aerospace and miscellaneous transportation equipment (up 2.5%);
- Petroleum and coal products (up 1.7%);
- Electrical equipment, appliances and components (up 1.4%); and
- Nonmetallic mineral products (up 0.9%).