Tip:
Highlight text to annotate it
X
(Image Source: Wikimedia Commons)
BY JOHN O'CONNOR
U.S. industrial production held flat in May after two consecutive months of declines — a
growing indicator that manufacturing is providing little support for the economy.
The Federal Reserve says factory production rose just 0.1 percent from April to May. Output
fell 0.4 percent in April and 0.3 percent in March. (via YouTube)
The Wall Street Journal notes the results were below economist expectations — a sign
that it might still be some time before we have an economic upturn.
"The manufacturing sector has been stumbling of late after being an important driver at
the start of the four-year-old economic recovery. Manufacturing employment has declined for
three consecutive months ... "
Capacity utilization also edged down 0.1 percent May — its lowest point since October 2012,
when superstorm Sandy disrupted operations in much of the Northeast. (via MarketWatch)
At the same time, Business Standard points out the auto industry remains a bright spot
for American manufacturing.
"Manufacturing increased in May for the first time in three months, helped by a gain in
auto production ... Industrial production should accelerate at the end of the third
quarter, beginning of the fourth quarter, because the impact of the sequester will be
limited." (via Business Insider)
Manufacturing output has risen just 1.7 percent over the last year.