Industrial production increased last month

Industrial production increased 0.1 percent last month amid rises in mining output along with defense equipment manufacturing as companies replenished supplies reduced by conflicts in the Ukraine and Middle East, according to the Federal Reserve..The small increase followed a 0.9 percent rise in April. Total industrial production, at 102.6 percent of its 2017 average, was 1.7 percent higher than its year-earlier mark. Capacity utilization increased to 76.2 percent, 3.2 percentage points under its long-term average. Sparked by a rise in oil and gas well drilling, the index for mining increased 1.3 percent. The mining operating rate increased 1.2 percentage points to 86.5 percent, higher than its long-term average. The operating rate for utilities dropped 0.4 of a percentage point to 70.6 percent, well below its average, as a rise in natural gas activity was offset by a drop in electric utilities. Manufacturing output was stagnant in May after rising 0.7 percent in April. Production of consumer goods fell 0.5 percent, with a 0.8 percent drop in the index for nondurable consumer goods more than making up for a half-percent percent rise in the index for durable consumer goods. Manufacturing capacity utilization remained at 75.7 percent last month, 2.5 percent below its 53-year average. Business equipment production increased 0.6 percent, sparked by a nearly 2 percent rise in the index for transit equipment. Defense and space equipment output increased 0.9 percent. The index for construction supplies increased 1.1 percent, while production of business supplies was stagnant. The index for materials increased 0.3 percent.