WASHINGTON - Industrial production edged up 0.1% in May, below economists’ estimates, as auto production was hampered by supply chain disruptions following the earthquake in Japan, the Federal Reserve reported Wednesday.
May capacity utilization was 76.7% for the month, unchanged from April.
Manufacturing production increased 0.4% following a 0.5% decline in April. Utilities production sank 2.8% in May.
Motor vehicle and parts production has fallen for two straight months after the earthquake in Japan and subsequent nuclear crisis. Excluding motor vehicles and parts, May’s manufacturing output increased 0.6%. Severe weather in many Southern states at the end of April contributed to a 0.1% decline in manufacturing output for the month. Total industrial production was flat in April, unchanged from the Fed’s initial report last month.
Economists expected industrial production would gain 0.2% in May and that capacity utilization would be 77.0%, according to the median estimate from Thomson Reuters.
