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Home»Tech»Tech and Defense Manufacturing Drive Industrial Output Higher in May
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Tech and Defense Manufacturing Drive Industrial Output Higher in May

June 16, 2026No Comments3 Mins Read
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U.S. industrial production edged up in May as strength in high-technology, defense, mining, and durable manufacturing offset weakness in nondurable goods and consumer products.

The Federal Reserve said Monday that industrial production rose 0.1 percent in May after a 0.9 percent gain in April. Total output was 1.7 percent above its year-earlier level.

That advance was weaker than the 0.3 percent gain economists had forecast.

Manufacturing output was unchanged following an upwardly revised 0.7 percent increase in April, but the flat headline masked a sharp divide within the factory sector. Durable-goods manufacturing rose 0.8 percent, with output increasing in nearly every major category. Nondurable manufacturing fell 0.9 percent, with declines across most categories.

The strength was concentrated in sectors tied to business investment, artificial intelligence infrastructure, and defense production. Output of computer and electronic products rose 0.9 percent in May and was up 10.3 percent from a year earlier. Semiconductor production jumped 2.4 percent for the month and 14.4 percent from May 2025. The Fed’s broader high-technology aggregate rose 1.8 percent in May and has climbed 12.6 percent over the past year.

Defense and space equipment production increased 0.9 percent, its sixth consecutive monthly gain. Business equipment output rose 0.6 percent and was up 5.7 percent from a year earlier, led by a 1.9 percent increase in transit equipment. Construction supplies rose 1.1 percent.

Several industries associated with data centers and industrial buildouts also posted gains. Primary metals rose 1.3 percent, fabricated metals increased 0.8 percent, machinery rose 0.2 percent, and electrical equipment, appliances, and components climbed 0.5 percent.

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Consumer goods were the main weak spot. Output fell 0.5 percent in May, as a 0.8 percent decline in nondurable consumer goods more than offset a 0.5 percent rise in durable consumer goods. Appliances, furniture, and carpeting fell 1.0 percent and were down 6.6 percent from a year earlier. Petroleum and coal products fell 3.0 percent, textiles dropped 2.4 percent, printing fell 1.6 percent, and chemicals declined 0.8 percent.

Mining output rose 1.3 percent, helped by a 5.0 percent jump in oil-and-gas well drilling. Utilities output fell 0.4 percent, with a decline in electric utilities more than offsetting an increase in natural gas utilities.

Capacity utilization for total industry edged up to 76.2 percent, still 3.2 percentage points below its long-run average. Manufacturing utilization held at 75.7 percent, 2.5 points below its long-run average. Mining was the exception, with utilization rising to 86.5 percent, above its historical average.

The figures point to a manufacturing sector increasingly led by hard industrial categories—chips, electronics, defense, transportation equipment, metals, machinery, and construction inputs—while consumer-facing and nondurable industries remain softer.

Defense Drive higher industrial Manufacturing Output Tech
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