Washington, DC, June 15, 2006--Output at the nation's factories, mines and utilities slipped 0.1% in May for the first decline since January, the Federal Reserve reported Thursday.
Capacity utilization fell 0.2 percentage point to 81.7 in May from 81.9 in the previous month. This is the first decline since January.
Economists had been expecting May's production to rise 0.2%.
Economists had also been anticipating capacity utilization would hold steady at 81.9%.
Industrial production was up 4.3% in the past year.
The output of consumer goods edged down 0.1% in May, led by the index for consumer durable goods. Output of automotive products, home electronics, appliances, furniture and carpeting all declined in May.
Consumer nondurable output rose 0.2% because of a jump in gasoline production.
Manufacturing output fell 0.1% in May, while output of utilities rose 0.2%.
The production of business equipment fell 0.2% after rising 2.1% in April.
Output of construction materials was down 0.6% in May after rising 0.3% in April.
