Industrial production (ex-construction) rebounded in May. However, a 0.7 percent monthly rise was smaller than expected and only partially reversed a slightly steeper revised 1.3 percent drop in April. Annual workday adjusted growth was 2.1 percent, up from 1.9 percent last time.
May's monthly bounce was broad-based with intermediates advancing 0.9 percent, capital goods 0.4 percent and consumer goods 0.2 percent. There was also a 1.2 percent jump in energy.
Despite May's rise, which was only the second in the last five months, average production in April/May was still 0.4 percent short of its first quarter mean. Absent of any revisions, output will need to expand at least 0.7 percent on the month in June if the sector is not to subtract from quarterly GDP growth. To this end, the manufacturing PMI (53.3) found a modest acceleration in production that might prove enough to keep its quarterly head above water. In any event, the trend remains quite sluggish.
Note that today's Italian report leaves overall Eurozone industrial production on course for a respectable monthly rise (data due Thursday).