The Fed said industrial production climbed 0.6% in May.
Consensus was for growth of 0.5%, up from a revised -0.3% rate in April.
Capacity utilization ticked 79.1%, beating expectations for 78.9%, which was also April’s revised figure.
Automotive products saw the biggest jump at 1.5%.
“The winter hit is now history, and output is rising strongly,” Pantheon Macro’s Ian Shepherdson said. He added: “This is a solid report, especially when the upward revisions to April manufacturing – to -0.1% from -0.4% – are taken into account. May’s 0.6% manuf number was helped by a 1.5% jump in the volatile auto sector, but output ex-autos rose 0.5% on the month — with a hefty 0.8% jump in capital equipment – and climbed at a 6.0% annualized rate in the three months to May, compared to the previous three months.”
It’s the second-consecutive datapoint beat: We just got Empire Fed data that came in ahead of expectations.
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