US Factory Production Falls in May

Factory production unexpectedly declined in May as the slump in energy output deepened.
The 0.2 percent decrease at manufacturers followed a 0.1 percent increase in April, figures from the Federal Reserve in Washington showed Monday. Total industrial production, which also includes mines and utilities, also dropped 0.2 percent.

Production of consumer energy products declined for a third consecutive month, exacerbating a decrease in other non-durable goods such as foods and chemicals that swamped continued gains among automakers. The sluggish data signal that a stronger dollar and decrease in fuel prices are still rippling through the economy, holding back American factories.

“The global economic situation is not ideal,” Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in Stamford, Connecticut, said before the report. As a result, “any growth that you see in manufacturing is going to be predominantly driven by domestic demand.”

via Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.