Industrial production rises 1.2 pct. in May

By DANIEL WAGNER AP Business Writer

WASHINGTON (AP) - Industrial production rose 1.2 percent in May as manufacturing remained a key engine of the economic recovery.

The Federal Reserve says output at the nation's factories, mines and utilities rose over April's 0.7 percent increase. The industrial sector's gains reflect the growing strength of the recovery.

Factories - the single biggest contributor to industrial activity - ratcheted up production by a 0.9 percent. It was the third straight monthly increase.

The gains were broad based, though mining output edged down by 0.2 percent. Production at utilities increased by 4.8 percent as warm weather created more demand for electricity.

U.S. factories were operating at 74.7 percent of capacity.