U.S. industrial production increased 0.4% in May, with capacity utilization rising to 78.1%
U.S. industrial production increased 0.4% in May, with capacity utilization rising to 78.1%, both better than expected. The 0.5% decline in April production was bumped up to -0.4% (but March was nudged down to a 0.1% gain from 0.2%). There was no revision to the 77.9% April capacity rate. Manufacturing edged up 0.2% from -0.5%. Motor vehicle and parts production climbed 2.4% versus -0.8% (revised from -2.6%). Machinery production rebounded 1.1% from -3.2% (revised from -2.6%). Computer/electronics were up 0.5% from 0.4% (revised from -0.5%). Utilities bounced 2.1% from -3.1% (revised from -3.5%). Mining inched up 0.1% from 2.2% (revised from 1.6%). This is another stronger than projected report and will further pressure yields higher and unwind expectations for an imminent Fed rate cut.