Industrial production, manufacturing output increased in May

Industrial production and manufacturing output increased 0.9 percent in May, according to the Federal Reserve. The resurgence in manufacturing came even as the Federal Reserve continued to hold interest rates at between 5.25-5.5 percent and signaled only one interest rate cut is likely this year. .Sparked by significant increases in wood products, machinery and computer and electronic products, the index for durable manufacturing increased 0.6 percent. The index for nondurable manufacturing rose 1.1 percent, while the index for publishing and logging manufacturing increased 0.2 percent..The utilities index increased 1.6 percent and was nearly 4 percent higher than its year-earlier mark. The index for mining increased 0.3 percent last month as an increase in oil and gas extraction was partially offset by declines in the indexes for other mining and other support activities.. At 103.3 percent of its 2017 average, total industrial production was 0.4 percent higher in May than its year-earlier mark. Capacity utilization increased to 78.7 percent, which is 0.9 percentage point under its long-term average. .Manufacturing capacity utilization increased to 77.1 percent, which is 1.1 percentage points under its long-term average. The mining operating rate increased 0.2 percentage points to 92.7 percent, which is 6.2 percent higher than its long-term average. The operating rate for utilities increased 0.9 percentage points to 71.5 percent. .The index for consumer goods increased 1.3 percent with increases in all components except for home electronics. The business equipment index increased 0.2 percent as a decrease in the transit component was outweighed by increases in the information processing index along with industrial and other components. .The index for space and defense equipment increased 1 percent and was nearly 10 percent higher than its year-earlier mark. The materials market group increased 0.8 percent in May, as indexes for non-energy durables and nondurables each increased approximately 1 percent. The index for energy materials increased 0.6 percent.