US Industrial Output Fell in May; Auto Production Plummeted
Source: ASSOCIATED PRESS
By JOSH BOAK, AP ECONOMICS WRITER WASHINGTON — Jun 15, 2016, 10:16 AM ET
Falling auto production fueled a broader decline in U.S. industrial output in May, a potentially worrying sign that manufacturers face economic challenges.
The Federal Reserve said Wednesday that industrial output — which includes factories, mines and utilities — dropped 0.4 percent from April. The decline reversed the 0.6 percent gain seen between April and March, an improvement that provided some evidence that the industrial economy was turning around after a period of extremely weak performance.
"The industrial side of the U.S. economy remains under pressure," said Gus Faucher, deputy chief economist at PNC Financial Services.
Sluggish growth abroad has dampened the demand for American-made goods, while lower energy prices caused a pullback on pipeline and equipment orders at many U.S. factories. The setbacks for manufacturers have limited overall economic growth.
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