The flat May U.S. industrial production figure undershot assumptions The flat May U.S. industrial production figure undershot assumptions, following modest net downward bumps to prior levels that left a smaller 0.4% (was 0.5%) April drop but smaller prior gains of 0.2% (was 0.3%) in March and 0.7% (was 0.9%) in February. Analysts're seeing a bigger than expected utility sector unwind of the huge Q1 weather-led utility surge to a record high, but with small expected gains for manufacturing, mining and business equipment. Industrial production is poised for a flat figure in Q2 following a weather-boosted 4.1% (was 4.4%) Q1 rate, a 2.5% (was 2.6%) pace in Q4 and a lean 0.3% clip in Q3, versus prior 1%-9% quarterly growth rates since the start of the expansion. Analysts've seen a persistent factory outperformance of GDP through this expansion, though this status was temporarily surrendered in Q3 of last year before the ensuing industrial production rebound, and now again in Q2 with the big utility sector unwind into the quarter.
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