Industrial production rose by 0.6% in the United States in the month of May, while capacity utilization rose to 79.1%. These compare to a 0.3% drop in production and 78.6% capacity utilization in the month of April. Bloomberg was looking for a gain of 0.5% in industrial production and 78.9% in capacity utilization.
Source: Thinkstock
The numbers released by the Federal Reserve on Monday are better than expected, but the reality is that these just might not be anywhere enough to move the needle when you consider the geopolitical risks that just arose in the past week.
Still, equity futures have reversed their loss. The S&P 500 was up two points and the Dow Jones Industrial Average was down by only 10 points shortly after the release of the data. Maybe it is coincidental, but it obviously doesn’t hurt.
Another consideration is that industrial production in April was at a real decline after strong gains in the prior two months. These numbers often fluctuate wildly. To prove the point: production was up 4.3% annualized in May if you compare it to May of 2013.
We are seeing a normalization after winter weather created high volatility in the first quarter.
ALSO READ: Ten States With the Slowest Growing Economies
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
