Industrial production in the United States surged more than anticipated in May, according to a report issued by the Federal Reserve on Tuesday.
The Federal Reserve disclosed that industrial production increased by 0.9 percent in May after remaining stagnant in April. Economists had forecasted a more modest rise of 0.3 percent.
This stronger-than-expected growth can be largely attributed to a recovery in manufacturing output, which grew by 0.9 percent in May following a decline of 0.4 percent in April.
Additionally, utilities output leapt by 1.6 percent in May after a significant 4.1 percent increase in April. Meanwhile, mining output recorded a modest rise of 0.3 percent in May, down from a 0.7 percent surge in April.
The report further indicated that capacity utilization in the industrial sector climbed to 78.7 percent in May, up from a revised 78.2 percent in April. Economists had predicted a rise to 78.6 percent from the initially reported 78.4 percent for the prior month.
Breaking it down by sectors, capacity utilization in manufacturing increased to 77.1 percent. In the mining sector, capacity utilization inched up to 92.7 percent, while the utilities sector saw a jump to 71.5 percent.