Utilities Dampen Industrial Production Growth

Before you go, we thought you'd like these...

Slow and steady isn't winning the race for manufacturing. Industrial production growth flatlined for May, according to a Federal Reserve report (link opens in PDF) released today.

After falling a revised 0.4% for April, analysts had expected a turnaround with 0.2% growth for May. Capacity utilitization predictions proved 0.3 percentage points too optimistic, with a slight contraction to 77.6% for May.

Source: Federalreserve.gov. 

Industrial goods' major market groups showed varying degrees of growth/contraction. While business equipment and materials both managed 0.2% production increases, construction fell 0.2% as nonindustrial supplies dropped 0.3%. 

Although manufacturing's 0.1% growth fell below analysts' 0.3% expectations, utilities proved to be the main pull on May's production. Following a 3.2% April decrease, utilities dropped another 1.8% in May. In the past year, utilities' 3.6% production dip is the only recorded growth contraction across all market and industry groups.


The article Utilities Dampen Industrial Production Growth originally appeared on Fool.com.

Y ou can follow Justin Loiseau on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading