Monday’s May 2026 Industrial Production rose 5.7% from a year ago and illustrates the dispersion in the economy.

The strongest areas were investment- and equipment-related: business equipment rose 0.6% in May and is up 5.7% from a year ago, with transit equipment up 10.4% year over year, information-processing equipment up 8.7%, and defense and space equipment up 7.7%.

Consumer-facing production was weaker: consumer goods fell 0.5% in May and are down 0.6% annually, with durable consumer goods still down 3.0% and automotive products down 5.0%.

Automotive products remain a weak underlying category on a year-over-year basis, down 5.0%, despite recent monthly rebounds.

Bottom Line: Industrial activity remains positive but highly uneven, with momentum concentrated in business equipment, high-tech, defense, and mining, while consumer-facing and nondurable categories continue to lag.

Sources: lpl.com/research & bankingjournal.aba.com