Economy: Industrial Production + Manufacturing + Capacity Utilization During May 2020

Tuesday, June 16, 2020

Industrial Production + Manufacturing + Capacity Utilization During May 2020

The Industrial Production, Manufacturing and Capacity Utilization numbers for May 2020 were released by the Federal Reserve this morning:

Industrial Production:
Predicted: +3.0%
Actual: +1.4%

Manufacturing:
Predicted: +4.0%
Actual: +3.8%

The yellow-highlighted percentages represent the month-to-month change in manufacturing, and physical output from mining operations, utility plants and factories for the entire United States.

Capacity Utilization Rate:
Predicted: 65.0%
Actual: 64.8%

The Capacity Utilization Rate represents the use of available resources at mining operations, utility plants and factories for the entire United States last month.

The "predicted" figures are what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...Total industrial production increased 1.4 percent in May, as many factories resumed at least partial operations following suspensions related to COVID-19. Even so, total industrial production in May was 15.4 percent below its pre-pandemic level in February. Manufacturing output -- which fell sharply in March and April -- rose 3.8 percent in May; most major industries posted increases, with the largest gain registered by motor vehicles and parts. The indexes for mining and utilities declined 6.8 percent and 2.3 percent, respectively. At 92.6 percent of its 2012 average, the level of total industrial production was 15.3 percent lower in May than it was a year earlier. Capacity utilization for the industrial sector increased 0.8 percentage point to 64.8 percent in May, a rate that is 15.0 percentage points below its long-run (1972 - 2019) average and 1.9 percentage points below its trough during the Great Recession..."

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