May's Industrial Production growth of +0.2% was a miss vs +0.4% expected, but that was made up for by a revision to +1.4% for April (from +1.1% prior; though notably March was revised down to 0.4% from 0.9%). All major market groups saw a deceleration, most to 2-month lows.
- The IP M/M growth was the slowest of the year. And manufacturing output fell by 0.1%, the first contraction since January.
- Mining was the only major industry group to accelerate (to 1.3% M/M from 1.1%), due to oil and gas: "May was the third consecutive month with gains of more than 1.0 percent in mining; over that period, the index for oil and gas extraction has averaged increases of 2.0 percent per month."
- Minimal market reaction to the data given that the headline figure was in-line when accounting for revisions. But overall, the report adds another piece of evidence for a slowdown in economic activity going into mid-year, if still shy of recessionary territory.