| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.1% | -0.1% to 0.2% | -0.7% | 1.0% | 0.9% |
| Year over Year | 0.3% | 0.3% to 0.9% | -0.9% | 0.3% | 0.1% |
Highlights
Industrial production fell 0.7 percent on the month in May, 0.8 percent less than the consensus and 1.7 percent less than April's revised 0.9 percent. Energy rose 0.7 percent, meanwhile intermediate goods and consumer goods fell 1.0 percent and 1.3 percent respectively. Capital goods on the other hand showed no change.
Year-over-year, output was down 0.9 percent, 1.2 percent less than the consensus and 1.0 percent less than April's revised 0.1 percent. This was largely due to declines in capital goods, consumer goods and intermediate goods, which fell 0.2 percent, 1.8 percent and 2.7 percent, respectively. This offsets the gains in energy. Energy grew 5.3 percent.
In sum, goods production declined in May compared to April, but on average, output rose 0.6 percent over the last three months.
Year-over-year, output was down 0.9 percent, 1.2 percent less than the consensus and 1.0 percent less than April's revised 0.1 percent. This was largely due to declines in capital goods, consumer goods and intermediate goods, which fell 0.2 percent, 1.8 percent and 2.7 percent, respectively. This offsets the gains in energy. Energy grew 5.3 percent.
In sum, goods production declined in May compared to April, but on average, output rose 0.6 percent over the last three months.
Market Consensus Before Announcement
Forecasters see industrial production up 0.1 percent on the month in May after rising 1.0 percent in April. The consensus see output up 0.3 percent on year.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Construction is excluded. Approximately 4,100 companies provide data on more than 8,000 monthly flows of production.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
