industrial production slows more than expected in May

The pace of industrial production in the United States slowed in May, more than expected, according to data released Friday by the American Central Bank (Fed), which also showed a contraction in manufacturing production. The increase in total production was 0.2% compared to April, the data for which was revised upwards (+1.4% against 1.1% initially estimated). This is much less than expected, since analysts were expecting an increase of 0.5%.

In detail, manufacturing production fell by 0.1%, with a sharp drop in production in the wood sector (-2.6%), machinery (-2.1%) or electronic and computer products ( -1.8%). Automotive production, which suffered last year from the global shortage of semiconductors, also slowed: +1.1% after +3.3% the previous month. In addition, among durable goods, the production of household appliances fell (-2.5%). The production of public utility services (water, electricity) slowed sharply to 1.9% after 5.5% in April (data revised upwards), due to the 4.5% drop in the natural gas production and the slowdown in electricity production (1.9% after 5.2%). Compared to May 2021, total industrial production increased by 5.8%.

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