US industrial production rallies more than expected

Industrial production bounced back surprisingly strongly in April, expanding 0.7% compared to the forecast 0.3% and compared to the revised 0.9% decline the month before, in part due to a jump in utility output.

Utility output, which accounts for 11% of total output, was boosted by a spike in energy demand as temperatures returned to seasonal norms.

"These data overall will not shift the needle at the Fed," said Ian Shepherdson, chief economist at Pantheon Macroeconomics, "the industrial economy is strong enough for inflation hawks to remain hawkish and weak enough for doves to remain dovish. The battle at the next FOMC will be fought over the labor market and inflation numbers."