US industrial production rose just 0.1% in May 2026, falling short of market expectations for a 0.3% increase, as manufacturing output stalled and capacity utilization remained below its long-run average.

Key Highlights

  • Industrial production increased 0.1% in May, below forecasts of 0.3% and down from an upwardly revised 0.9% gain in April.
  • Manufacturing output was unchanged in May, missing expectations for a 0.3% rise.
  • Capacity utilization edged up to 76.2%, still 3.2 percentage points below its 1972-2025 long-run average.
  • Mining production rose 1.3% while utilities output fell 0.4% on the month.

US industrial production increased by 0.1% in May 2026, according to official data, falling short of market expectations for a 0.3% rise. The figure followed an upwardly revised 0.9% increase in April, marking a sharp slowdown in the pace of overall output growth.

Manufacturing output, which accounts for about 78% of total industrial production, was unchanged in May after rising 0.7% in April. The flat reading also missed forecasts, which had called for a 0.2% gain. The stall in manufacturing activity weighed heavily on the broader industrial production figure given its dominant share of the index.

Within manufacturing, the picture was mixed across categories. Production of durable goods rose 0.8% in May, with output increasing in almost all categories. Wood products, nonmetallic mineral products, primary metals, and motor vehicles and parts each posted gains of more than 1%. In contrast, production of nondurable goods fell 0.9%, with declines recorded across almost all categories within that segment.

Mining production increased 1.3% in May, continuing to outperform other sectors of the industrial economy. Utilities output declined 0.4% on the month, as a 1.7% drop in electric utilities production more than offset an 8.5% increase in natural gas utilities output.

Capacity utilization across the broader economy edged up to 76.2% in May, up from 76.1% in February and in line with market expectations. The reading remained 3.2 percentage points below its long-run average covering 1972 through 2025, underscoring continued slack in overall productive capacity.

Manufacturing capacity utilization held steady at 75.7% in May, a level 2.5 percentage points below its long-run average. Mining utilization rose to 86.5%, now 1.3 percentage points above its historical average, the only major sector operating above its long-term norm. Utilities utilization fell to 70.6%, remaining substantially below its long-run average by 13.4 percentage points.

The data suggests uneven momentum across the US industrial economy, with mining activity running hot relative to history while manufacturing and utilities continue to operate with meaningful spare capacity. The mixed readings add to the broader set of economic indicators being monitored ahead of upcoming policy decisions.