Industrial Production Surges 1.1% in May

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ndustrial production increased 1.1% in May, the most in almost six years, the Federal Reserve reported Wednesday.

The rise in production at the nation's factories, mines and utilities followed April's 0.8% increase, the Fed said in Washington. The proportion of industrial capacity in use rose to 77.8%, the highest since May 2001, from 77.1%.

The May rise was the largest since a 2% increase in August 1998, when production surged after the return of striking General Motors Corp. workers, the Fed said.

The manufacturing sector is one of trucking’s largest and most important customers, and when it is growing, the demand for trucking services generally rises.

Industrial production is up 6.3% from May of last year, the biggest 12-month increase since a 7% gain in the year ended May 1998.

Work at factories, which accounts for almost 90% of industrial production, rose 0.9% last month, the most since February.

Business equipment production, which includes transportation and information processing equipment, rose 1.4% in May, the Fed said.

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