Industrial production in the US was unchanged in May as a drop in utility use offset gains in manufacturing and mining.
Last months output at factories, mines and utilities followed a revised 0.4 per cent decrease in April that was smaller than previously reported, a US Federal Reserve report showed today in Washington. The median forecast in a Bloomberg survey called for a 0.2 per cent advance. Manufacturing, which makes up 75 per cent of total production, increased 0.1 per cent after falling 0.4 per cent.
Business investment has eased as the economy navigates the effects of this years across-the-board US government budget cuts and higher taxes. At the same time, the auto industry remains a bright spot for manufacturing, which has been hindered by a recession in Europe and a slowdown in China.
Stocks were little changed after the Standard & Poors 500 Index posted its second-biggest gain this year. The S&P 500 fell less than 0.1 per cent to 1,635.85 at 9:57 am in New York.
Estimates of the 85 economists surveyed by Bloomberg ranged from a drop of 0.4 per cent to an increase of 0.7 per cent. The prior month was previously reported as a 0.5 per cent decrease. Manufacturing accounts for about 12 per cent of the economy.
Utility output
Output at utilities declined 1.8 per cent after a 3.2 per cent slump the previous month. Consumers have adjusted their thermostats after temperatures turned more seasonable following colder-than-normal readings in the first quarter.
Weve gone from a seasonally cool winter to what seems to be an unseasonably cold spring, said John Ryding, chief economist at RDQ Economics in New York. You dont need to heat but you dont need to power up your air conditioners either.
Manufacturing increased in May for the first time in three months, helped by a gain in auto production. The output of motor vehicles and parts increased 0.7 per cent after a 0.4 per cent decrease a month earlier, todays report showed. Manufacturing excluding cars and parts rose 0.1 per cent after a decrease of 0.4 per cent.
Vehicle sales
Auto sales are holding up. A report yesterday from the US Commerce Department showed purchases at car dealerships climbed 1.8 per cent in May, more than twice the 0.7 per cent gain a month earlier. Cars and light trucks sold at a 15.2 million annualised rate in May, the sixth month out of the last seven to exceed the 15 million mark.
Assembly lines turned out 0.2 per cent more business equipment in May and 0.1 per cent less consumer goods. Production of computers and electronic products jumped 1.1 per cent last month.
Machinery production decreased 0.4 per cent, the third straight decline. Output of construction materials also dropped for a third month, falling 0.2 per cent in May.
General Motors Co is reinvesting about $8 billion a year to boost its global competitiveness, said Senior Vice-President and Chief Financial Officer Dan Ammann.
More progress
We continue to keep a close eye on the economic situation, Ammann said at a June 12 conference. Theres clearly been progress. But I dont think its as strong as some of the asset prices and so on would cause you to believe.
Capacity utilisation, a measure of efficiency, eased to 77.6 per cent from 77.7 per cent the prior month, todays Fed report showed.
Mining output, which includes oil drilling, rose 0.7 per cent in May after a 1.1 per cent increase, today figures showed.
Chinas slowdown and the European recession have kept pressure on global manufacturers including DuPont Co and Dow Chemical Co.
Customers are cautious and the signals continue to be mixed, said Howard Ungerleider, an executive vice president at Dow, based in Midland, Michigan.
The good news is right here in the US, where we do see improvements, although growth still remains at lower levels then we would like, Ungerleider said at a June 12 conference. Residential construction is up, but public budget tightening is limiting growth in the commercial sector. Our businesses last year really called for 2013 to be like 2012 and this is proving to be more right than wrong.
Last months output at factories, mines and utilities followed a revised 0.4 per cent decrease in April that was smaller than previously reported, a US Federal Reserve report showed today in Washington. The median forecast in a Bloomberg survey called for a 0.2 per cent advance. Manufacturing, which makes up 75 per cent of total production, increased 0.1 per cent after falling 0.4 per cent.
Business investment has eased as the economy navigates the effects of this years across-the-board US government budget cuts and higher taxes. At the same time, the auto industry remains a bright spot for manufacturing, which has been hindered by a recession in Europe and a slowdown in China.
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US CEOs remain cautious because of uncertainties regarding fiscal issues, said Christophe Barraud, an economist at Market Securities-Kyte Group in Paris, who correctly forecast May industrial production. Global demand is still weak. Industrial production should accelerate at the end of the third quarter, beginning of the fourth quarter, because the impact of the sequester will be limited.
Stocks were little changed after the Standard & Poors 500 Index posted its second-biggest gain this year. The S&P 500 fell less than 0.1 per cent to 1,635.85 at 9:57 am in New York.
Estimates of the 85 economists surveyed by Bloomberg ranged from a drop of 0.4 per cent to an increase of 0.7 per cent. The prior month was previously reported as a 0.5 per cent decrease. Manufacturing accounts for about 12 per cent of the economy.
Utility output
Output at utilities declined 1.8 per cent after a 3.2 per cent slump the previous month. Consumers have adjusted their thermostats after temperatures turned more seasonable following colder-than-normal readings in the first quarter.
Weve gone from a seasonally cool winter to what seems to be an unseasonably cold spring, said John Ryding, chief economist at RDQ Economics in New York. You dont need to heat but you dont need to power up your air conditioners either.
Manufacturing increased in May for the first time in three months, helped by a gain in auto production. The output of motor vehicles and parts increased 0.7 per cent after a 0.4 per cent decrease a month earlier, todays report showed. Manufacturing excluding cars and parts rose 0.1 per cent after a decrease of 0.4 per cent.
Vehicle sales
Auto sales are holding up. A report yesterday from the US Commerce Department showed purchases at car dealerships climbed 1.8 per cent in May, more than twice the 0.7 per cent gain a month earlier. Cars and light trucks sold at a 15.2 million annualised rate in May, the sixth month out of the last seven to exceed the 15 million mark.
Assembly lines turned out 0.2 per cent more business equipment in May and 0.1 per cent less consumer goods. Production of computers and electronic products jumped 1.1 per cent last month.
Machinery production decreased 0.4 per cent, the third straight decline. Output of construction materials also dropped for a third month, falling 0.2 per cent in May.
General Motors Co is reinvesting about $8 billion a year to boost its global competitiveness, said Senior Vice-President and Chief Financial Officer Dan Ammann.
More progress
We continue to keep a close eye on the economic situation, Ammann said at a June 12 conference. Theres clearly been progress. But I dont think its as strong as some of the asset prices and so on would cause you to believe.
Capacity utilisation, a measure of efficiency, eased to 77.6 per cent from 77.7 per cent the prior month, todays Fed report showed.
Mining output, which includes oil drilling, rose 0.7 per cent in May after a 1.1 per cent increase, today figures showed.
Chinas slowdown and the European recession have kept pressure on global manufacturers including DuPont Co and Dow Chemical Co.
Customers are cautious and the signals continue to be mixed, said Howard Ungerleider, an executive vice president at Dow, based in Midland, Michigan.
The good news is right here in the US, where we do see improvements, although growth still remains at lower levels then we would like, Ungerleider said at a June 12 conference. Residential construction is up, but public budget tightening is limiting growth in the commercial sector. Our businesses last year really called for 2013 to be like 2012 and this is proving to be more right than wrong.