Manufacturing production grew by +0.5% y/y in May, improving from -6.4% y/y in April (revised) and outperforming consensus estimates of -1.4% y/y.

May’s manufacturing growth, although meagre, marks the first expansion since October 2024, driven by improved readings in all key manufacturing categories.

Improvements were led by ‘basic iron & steel’  (+4.3% y/y from -6.5% y/y in April), followed by ‘food & beverage’ manufacturing (-0.2% y/y from -8.2% y/y in April).

Additionally, ‘vehicle’ manufacturing (-6.7% y/y from -11.0% y/y in April) and ‘fuel’ production (-0.6% y/y from -4.7% y/y in April) became less contractionary in May.