U.S. Industrial Production, And U.S. And Canadian Manufacturing Sales Improve

Connecting the Dots monitors all major economic announcements in the United States and Canada, but the Metals Service Center Institute also offers industrial metals industry-specific data products that provide much deeper analysis and insight. Visit MSCI’s website and click on industry data to learn more about our Metals Activity Report (MAR), Momentum Monitors, and Macroeconomic Current.

Meanwhile, here are the major economic headlines from the last week:

• Industrial production in the United States increased 0.7 percent in April after falling 0.3 percent in March. Manufacturing output rose 0.6 percent in April while the index for mining fell 0.1 percent and utilities output moved up 1.9 percent. At 102.5 percent of its historical average, total industrial production in April was 1.4 percent above its level from one year earlier. Capacity utilization moved up to 76.1 percent, a rate that was 3.3 percentage points below its long-run average.
• U.S. manufacturing sales rose 2.1 percent from February 2026 to March 2026 and 7.1 percent from March 2025 to March 2026. Inventories advanced 0.9 percent for the month and two percent year-over-year. The total business inventories-to-sales ratio was 1.32 in March 2026, down from 1.38 from a year earlier.
• Canadian manufacturing sales reached their highest level since January 2025, rising three percent between February 2026 and March 2026 to $73.6 billion. Total sales were up 3.5 percent between March 2025 and March 2026. Sales increased in nine of 21 subsectors for the month, led by the petroleum and coal product sales (up 22.7 percent) and transportation equipment sales (up six percent).
• Wholesale sales in Canada increased 1.9 percent from February 2026 to March 2026 to $89 billion in March, and were up 3.3 percent year-over-year. Sales increased in five of the seven subsectors. The largest increase came from the machinery, equipment, and supplies subsector.
• Regional manufacturing readings have been mixed this month. According to the Federal Reserve Bank of New York, manufacturing activity in the state grew strongly in May. The bank’s general business conditions index rose nine points to +19.6, its highest reading since April 2022, and the new orders index rose three points to 22.7, its highest level in more than four years. The shipments index was little changed, unfilled orders increased for the fourth consecutive month, and inventories rose modestly. The Federal Reserve Bank of Philadelphia showed manufacturing activity in its region weakened. The survey’s indicators for general activity, new orders, and shipments all fell sharply while the employment index ticked up but remained negative. Finally, the Federal Reserve Bank of Kansas City’s composite index fell to +8 in May from +10 in April. Durable manufacturing activity growth slowed due to declines in transportation equipment. Nondurable manufacturing activity increased. Most month-over-month indexes were positive except for new orders for exports.
• The National Federation of Independent Business’s Small Business Optimism Index rose 0.1 points in April to 95.9, but remained below its 52-year average of 98.0 for the second month in a row. The index’s uncertainty reading fell four points to 88, but remained well above its historical average of 68. Read the full report.
• Inflation spiked in the United States in April. The producer price index rose 1.4 percent between March 2026 and April 2026, the largest increase since March 2022, and was up six percent between April 2025 and April 2026. The year-over-year increase was the biggest jump since December 2022. The consumer price index (CPI) rose 0.6 percent for the month, meanwhile, and 3.8 percent year-over-year. The CPI’s annual increase was the highest jump for consumer inflation since 2023. Wages for employees increased 3.6 percent over the same period, strengthening relative to March, but the growth still was not strong enough to offset inflation. The 0.2 percent decline in worker pay was the first year-over-year drop since 2023.
• During the week that ended May 16, 209,000 U.S. residents filed for federal unemployment benefits for the first time, a number that was down by 3,000 from the previous week. The four-week moving average of first-time claims was 202,250, down 1,500 from the previous week. The number of people who continued to receive jobless benefits rose to 1.782 million for the week that ended May 9, 2026, up by 6,000 from the week before. The four-week moving average of continuing claims, meanwhile, fell to 1,773,000, a decrease of 6,500 from the week before.
• In other economic news: the number of new homes under construction in the United States fell 2.8 percent from March 2026 to April 2026, but was up 4.6 percent between April 2025 and April 2026; the number of existing homes sold in the United States increased 0.2 percent between March and April, but growth was flat year-over-year; U.S. import prices increased 1.9 percent in April while prices for U.S. exports advanced 3.3 percent; Canada’s consumer price index increased 0.4 percent between March and April and 2.8 percent year-over-year; and the University of Michigan’s consumer sentiment index plunged from 49.8 in May to 44.8 in June.