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UPDATE:Industrial production in the U.S. declined 0.1 per cent in May, below expectations and a sharp reversal from April’s revised 1.0 per cent gain.
Capacity utilization fell slightly during the month, off 20 basis points to 79.0 per cent.
A decline in consumer goods production, and the auto sector in particular, were attributed for the sluggish results, with the overall category off 0.2 per cent in May.
“Within consumer goods, the output of durables fell 1.3 per cent in May, with none of the major categories registering an increase,” the Federal Reserve said in a statement.
Data from the Fed showed that the seasonally adjusted annual rate of light vehicle sales dropped to 10.08 million units, off of April’s recent high but substantially above the 2011 average run rate.
Business equipment rose 0.3 per cent in May, led by increases in transit equipment, while defence and space equipment fell 2.2 per cent after a strike from a major military facility.
U.S. industrial production is expected to ease in May, after increasing at a healthy clip in April.
Economists polled by Bloomberg forecast production increased by 0.1 per cent during the month.
Capacity utilization is seen flat at 79.2 per cent.
The announcement is scheduled for 9:15 a.m. ET.
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