Macro Flash Report

Industrial & Manufacturing Production

Takeaway: After a sluggish start to the year, industrial production surged in May to its highest seasonally adjusted level in 19 months. While the industrial side of the economy continues to face strong headwinds, this is another encouraging signal that the worst for steel consuming sectors is likely in the rear-view mirror.

Industrial Production, & YoY change (red/green)


In May, Industrial Production rose by 0.9%, surpassing the market expected 0.3% increase and recovering from the prior month’s flat reading.

  • Year-over-year, production increased by 0.4%, following a downwardly revised -0.7% drop in April, marking the first rise in five months (including February’s flat print).
  • Capacity Utilization also improved, ticking up to 78.7% from 78.2%, slightly above the forecasted 6% and reaching a six- month high, though still below the long-term average of 79.6%.


Manufacturing (SIC) Production, which accounts for 78% of industrial production, similarly surprised to the upside, increasing by 0.9% versus the anticipated 0.3% and reversing the previous month’s -0.4% decline (after revisions).

  • Durable manufacturing saw a 6% rise, while nondurable manufacturing surged by 1.1%.
  • Capacity Utilization for manufacturing climbed to 1%, 1.1% below its long-term average.