https://www.cmegroup.com/content/dam/cmegroup/images/common/default/article-940x600.jpg
FR: Industrial Production
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | -0.3% | -0.4% to 0.5% | -0.3% | 0.1% | 0.3% |
| Year over Year | 3.2% | 2.9% |
Highlights
Industrial output fell 0.1 percent in May after a revised 0.3 (0.1) percent increase in June. The year-on-year comparison showed a 3.2 percent increase, the fastest pace since September 2022.
The manufacturing sector recorded a 1.0 percent month-on-month increase after a 0.6 percent increase the month before. Year-on-year output was up 2.2 percent. In the volatile transportation component, production fell 2.8 percent month-on-month, while gaining 10.9 percent from May of last year.
Energy production was 3.2 percent higher in May than the previous month, and 3.3 percent higher than a year ago.
Refined petroleum products and coking coal output dropped 9.0 percent in June, while expanding 15.7 percent over a year ago. At the same time, machinery and equipment output fell 2.3 percent month-on-month while recording a 2.6 percent year-on-year increase.
Among the major industrial groups, output for capital- and intermediate goods fell 2.1 percent and 0.7 percent respectively in May, while gaining 5.3 percent and 0.8 percent year-on-year. Consumer durables production was also lower month-on-month, falling 5.3 percent in May and gaining 5.9 percent year-on-year.
Market Consensus Before Announcement
Industrial output expected to slip 0.3 percent in May from April after edging up 0.1 percent in April.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Manufacturing is seen as the best guide to underlying developments as some sectors can be very volatile and cause misleadingly large short-term swings in total industrial 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 won't 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.