U.S. industrial output slips in May, import prices fall more quickly than expected
Staff Writer |
Industrial production in the U.S. undershot market forecasts in May, on the back of weakness in factory and utilities output.
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Total industrial production was flat last month in comparison to April and ahead by 2.2% on the year, according to data from the Federal Reserve.
Economists had anticipated an increase of 0.1% on the month.
An estimated 0.4% increase in March industrial production was revised down to show a gain of just 0.1%, although April's rise was revised up by one tenth of a percentage point to 1.1%.
By market groups, production of consumer goods slowed noticeably in May, rising by just 0.2% on the month after a jump of 1.7% in the month before.
The business equipment category saw an even larger swing, with output down by 0.7% on the month after a rising 1.5% in April.
Production of non-industrial supplies, which includes construction, and materials also experience big swings in May.
Looking at the breakdown of activity by industry groups, mining output held up well, adding to April's 1.5% rise with a gain of 1.6%.
Manufacturing sector activity on the other hand gave back part of April 1.1% gain, slipping by 0.4%. To take note of, a prior estimate of a 0.4% drop in March was marked down to show a fall of 0.8%.
Capacity utilisation ran at 76.6% in May, down from 76.7% in April (consensus: 76.8%).
Import prices Stateside fell more than expected last month amid a large drag from declining fuel import costs.
The cost of purchasing goods overseas fell by 0.3% month-on-month in May, according to the Department of Labor.
Previous estimates for March and April were revised lower as well, contributing to a drop in the year-on-year rate of import price gains from 2.9% in April to 2.1% for May.
In comparison to April, fuel import prices were down by 3.7% and non-fuel costs flat.
Export prices also retreated, slipping by 0.7% over the month after rising 0.2% in the month before.
Lower prices for agricultural exports accounted for the bulk of the decrease, slipping by 1.6% on the month.
Meanwhile, the cost of non-agricultural exports fell by 0.6%. ■