WASHINGTON (Reuters) - U.S. manufacturing rebounded in May, but recouped only a fraction of the prior month’s record decline, suggesting some stabilization in the sector after the COVID-19 pandemic disrupted supply chains and hurt demand.
The Federal Reserve said on Tuesday manufacturing production increased 3.8% last month. Data for April was revised down to show output at factories plunging 15.5%, which was the biggest drop in the series’ history, instead of 13.7%.
Economists polled by Reuters had forecast manufacturing output rebounding 4.6% in April. Overall industrial production increased 1.4% after declining 12.5% in April, which was the largest drop in the series’ 101-year history.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama