US factory output up 0.6% in May

[WASHINGTON] Industrial production climbed more than forecast in May, a sign that gains in manufacturing are supporting growth as the US economy picks up.

Output at factories, mines and utilities rose 0.6 per cent after a revised 0.3 per cent drop in April that was smaller than previously estimated, a report from the Federal Reserve showed yesterday in Washington. The median forecast in a Bloomberg survey called for a 0.5 per cent increase. Manufacturing, which makes up 75 per cent of total production, also increased 0.6 per cent.

Demand for industrial goods is improving as consumer and business spending strengthen and the economy rebounds from its worst performance in three years. Bigger gains in corporate investment and stronger growth in overseas markets will be needed to provide an additional lift for US producers.