Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US industrial production jumped by 1.4pc last month from April as manufacturing facilities across the country restarted operations, but plunged by 15.3pc from the same month a year ago, according to the US Federal Reserve.


The Federal Reserve pegged its industrial production index at 92.6 in May, up from 91.3 a month earlier. Manufacturing production increased by 3.8pc in May from a month earlier—which, along with March, saw substantial declines of 15.5pc and 5.3pc, respectively—but once again plummeted on an annual basis by 16.5pc.


Construction production rose by 1.6pc in May from a month earlier, but still declined by 11.2pc annually. Business equipment also increased by 5.8pc in May from the prior month, but plummeted by 27.1pc from May 2019.


The rise in manufacturing was led by the automotive vehicles and parts industry, which resumed operations last month after shutting down for almost two months to contain COVID-19’s spread. However, mining production declined by 6.8pc in May from the previous month, and by 14.1pc annually. Utilities fell by 2.3pc last month from April, and dropped by 8pc on an annual basis.


The overall US industry’s capacity utilization declined to 64.8pc in May 2020, slightly up from 64 in April but declined from 77.8pc in May 2019. The manufacturing  industry’s capacity utilization rose to 62.2pc last month from 60pc in April, but declined from 75.4pc in May 2019. Mining capacity utilization declined to 75.4pc in May from 81.2pc in April, and fell sharply from 91.3pc in May of last year. Utilities capacity utilization fell to 69.1pc last month from 70.9pc in April, and from 77.2pc a year ago.

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