WASHINGTON - Industrial production increased 1.2% in May, stronger than economists expected and the largest gain since August, the Federal Reserve reported today.
Capacity utilization increased to 74.7%, the highest level since August 2008. Utilization reached its low point for the current economic recession of 68.3% last June.
Economists expected industrial production to rise 0.7% and for 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 reported last month. Capacity utilization was unrevised at 73.7%.
Utilities production jumped 4.8% in May following three consecutive months of declines, reflecting unseasonably warm temperatures that boosted air conditioning usage.
Manufacturing production increased 0.9% and mining production fell 0.2%.
The production index for durable goods increased 1.7%.
