May 20, 2024

US manufacturing output dips in April

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Production at U.S. factories unexpectedly fell in April amid a decline in motor vehicle output, data showed on Thursday.

Manufacturing output dropped 0.3% last month following a downwardly revised 0.2% increase in March, the Federal Reserve said. Economists polled by Reuters had forecast factory output rising 0.1% after a previously reported 0.5% advance in March.

Production at factories fell 0.5% year-on-year in April. Manufacturing, which accounts for 10.4% of the economy, remains constrained by higher borrowing costs.

A survey from the Institute for Supply Management early this month showed manufacturing regressing in April after growing in March for the first time in 1-1/2 years.

Motor vehicle and parts output decreased 2.0% last month after increasing 2.8% in March. Durable goods manufacturing production declined 0.5%. There were also decreases in the production of electrical equipment, appliances and components as well as wood products. But production of primary metals, computer and electronic products, aerospace and miscellaneous transportation equipment increased.