US: Industrial production to post a modest 0.1% increase in May - Nomura

Analysts at Nomura are forecasting a modest 0.1% m-o-m increase in US May industrial production, but they expect this slowdown to be transitory.

Key Quotes

“Based on industry forecasts, auto production likely slowed sharply in May. However, manufacturing output excluding autos and parts likely increased steadily, consistent with elevated business sentiment, but possibly not enough to offset the drag from the auto sector.”

“Mining sector output likely rose solidly in May following strong gains earlier this year when crude oil prices picked up materially. Industry data on electric utility points to another solid increase in utility output.”