US industrial output barely expanded last month, but without the drag of weaker auto assemblies, output would have come in much stronger. Industrial output rose 0.1pc in May from April and was down 0.8pc from a year earlier, according to Federal Reserve statistics. Economists had expected zero growth on the month. April figures were revised to show a slightly larger 0.6pc drop after a similar decline in March. Manufacturing output increased 0.2pc on the month and, excluding the auto sector, was up 0.3pc.
Capacity utilisation remained unchanged last month, at 74.3pc, meaning roughly 25pc of US plants remain idle. The capacity use rate is about 7pc below its average of the last 30 years. Earlier today, the Commerce Department reported that housing starts, the rate at which builders broke ground on new homes, jumped 6.1pc in May to a 1.73 million unit annual rate. Low mortgage rates have boosted demand for homes in the US and last month's increase was owed in large part to a 35pc surge in groundbreaking for apartment and condominium buildings. //www.fxcentre.com