Chart of the day: Industrial production hits a record amid signs of a slowdown

REAL ECONOMY BLOG | June 17, 2022

Authored by RSM US LLP

Industrial production in the United States hit a record in May, but signs of a coming economic slowdown emerged in the report released on Friday by the Federal Reserve.

Production volume overall increased by 0.2% on the month for the fifth straight monthly gain. At the same time, manufacturing production, a narrower but still significant gauge of activity, fell by 0.1%. Manufacturing products account for 75.9% of total industrial production.

Industrial production

As demand slows and interest rates rise, we expect production activities to slow or even decline in the coming months, in line with our RSM US Manufacturing Outlook Index.

Output for motor vehicles rose by 0.7%, not enough to offset the drop in non-vehicle components, which declined by 0.1%.
Utilities and mining posted solid growth in May as demand for summer travel increased. Utilities were up by 1.0% while mining was up by 1.3%.

Rising oil and gasoline prices incentivize producers to ramp up production. Mining activities for drilling oil and gas wells rose by a sharp 6.2% on the month.

Industrial production by group

On aggregate, production of energy-related products rose by 1.4% in May, following another sharp rise of 2.8% in April as a result of continuing sanctions on Russian energy exports.

Capacity utilization—which feeds into our RSM US Supply Chain Index—rose slightly to 79% from 78.9%, driven by higher utility and mining capacities.

Let's Talk!

Call us at +1 213.873.1700, email us at or fill out the form below and we'll contact you to discuss your specific situation.

  • Topic Name:
  • Should be Empty:

This article was written by Tuan Nguyen and originally appeared on 2022-06-17.
2022 RSM US LLP. All rights reserved.

RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.

​Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.

For more information on how ​Vasquez & Company LLP can assist you, please call +1 213.873.1700.

Subscribe to receive important updates from our Insights and Resources.

  • Should be Empty: