U.S. industrial production rose 1.2 percent in May as manufacturing remained a key driver of the nascent economic recovery, the government reported Wednesday. The Federal Reserve (Fed) said output at U.S. factories, mines, and utilities followed April's 0.7 percent increase, and the industrial sector's gains reflect the growing strength of the recovery. Factories - the biggest contributor to industrial activity - increased production by 0.9 percent. It was the third consecutive monthly increase, and U.S. factories were operating at 74.7 percent of capacity, the central bank said. Production at utilities increased by 4.8 percent as warm weather created more demand for electricity, though mining output fell 0.2 percent, the Fed reported. Output of consumer goods was helped by a strong 2.6 percent gain for consumer durable goods. Greater production of automotive products and home electronics more than offset declines for home goods like appliances, furniture, and carpeting.
