WASHINGTON — Industrial production increased 1.2% in May to post its largest gain since August, the Federal Reserve reported yesterday. The surge in output exceeded economist expectations.
Capacity utilization increased to 74.7%, the highest level since August 2008.
Economists expected industrial production to rise 0.7% and capacity utilization to increase to 74.5%, according to the median estimate from Thomson Reuters.
Production for April was revised lower to a 0.7% increase from the 0.8% gain initially reported last month. Capacity utilization in April was unrevised at 73.7%.
