Author: Tronserve admin
Tuesday 27th July 2021 01:54 PM
U.S. Industrial Production Rose in May, but Factories Struggle
U.S. industrial production increased in May, but manufacturers showed weak spot despite having eking out a slight gain.
The Federal Reserve said Friday that industrial output, which includes factories, utilities and mines, increased 0.4% in May, just after tumbling 0.4% in April.
Manufacturing output better just 0.2% last month, not enough to overcome declines in prior months. Factory production is down 1.5% since the end of 2018, an indicator of the possible harm from the import taxes the Trump administration has placed on China. During the first quarter of this year, motor vehicle production plunged 14.9%. Furniture output drop 5.8%. Clothing production has fallen 22.6%.
Factories' capability utilization in May was 75.7%, down from 77.3% in December 2018. The lower utilization levels indicate that factories are seeing less demand than manufacturers had expected.
Production at the nation's utilities improved 2.1%, a consequence of bigger use of natural gas and electricity.
Production at mines, a sector that also covers oil and natural gas, advanced a modest 0.1%. Gains in oil and natural gas extraction were basically offset by a turn down in drilling.
This article is originally posted on manufacturing.net