by Calculated Risk on 6/17/2025 09:15:00 AM
From the Fed: Industrial Production and Capacity Utilization
Industrial production (IP) fell 0.2 percent in May after increasing 0.1 percent in April. Manufacturing output ticked up 0.1 percent in May, driven by a gain of 4.9 percent in the index for motor vehicles and parts; the index for manufacturing excluding motor vehicles and parts fell 0.3 percent. The index for mining increased 0.1 percent, and the index for utilities decreased 2.9 percent. At 103.6 percent of its 2017 average, total IP in May was 0.6 percent above its year-earlier level. Capacity utilization moved down to 77.4 percent, a rate that is 2.2 percentage points below its long-run (1972–2024) average.
emphasis added
Click on graph for larger image.
This graph shows Capacity Utilization. This series is up from the record low set in April 2020, and close to the level in February 2020 (pre-pandemic).
Capacity utilization at 77.4% is 2.2% below the average from 1972 to 2023. This was below consensus expectations.
Note: y-axis doesn’t start at zero to better show the change.
The second graph shows industrial production since 1967.
Industrial production decreased to 103.6. This is above the pre-pandemic level.
Industrial production was below consensus expectations and the previous months were revised down.
