Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

U.S. industrial production drops in May on sharp decline in manufacturing production

U.S. industrial production came in below expectations in May, mainly due to a sharp decline in manufacturing production. In all, the industrial production dropped 0.1 percent sequentially and manufacturing IP fell 0.7 percent sequentially. The press release linked the large decline in manufacturing production to a fall of truck assemblies by a major fire at a parts supplier. Stripping motor vehicles and parts, the fall in manufacturing production was more modest.

Utilities production rose 1.1 percent sequentially, and mining production remained solid with growth of 1.8 percent sequentially, aiding partially counter the unexpected fall in the manufacturing sector. Overall, this morning’s report was weaker than expected. The destruction of truck assemblies indicates towards a fall in inventory accumulation this quarter.

The sharp fall in manufacturing production was driven by vehicle assemblies, which dropped 6.5 percent. Stripping this category, production fell 0.2 percent, in the midst of a fall in machinery production and zero growth in computers & electronics production. Utilities production, though solid at the headline level, saw volatility in subcategories.

Total utilities production was widely consistent with what was expected, leaving the PCE tracking unchanged.

“The sharp fall in motor vehicle assemblies dragged our inventories tracking estimate lower. In all, our Q2 GDP tracking ended one-tenth lower, at 3.6 percent, after rounding”, stated Barclays in a research report.

At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was bullish at 74.7414. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

September 19 14:30 UTC Released

USEIA Weekly Crude Runs

Actual

-0.442 M

Forecast

Previous

0.21 M

September 19 14:30 UTC Released

USEIA Weekly Refining Util

Actual

-2.2 %

Forecast

-1 %

Previous

1 %

January 31 00:00 UTC 333560333560m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 333560333560m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 345380345380m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 333560333560m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 345380345380m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 333560333560m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 333560333560m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 333560333560m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.