U.S. Factory Production Flat for Second Straight Month
(MENAFN- Saudi Press Agency) U.S. factory production was unchanged for the second straight month in June, the Federal Reserve (Fed) said Wednesday, as a sharp drop in auto manufacturing was offset by greater output of furniture and chemicals.
Manufacturers are struggling to overcome several challenges, including the strong dollar, weak overseas growth, and cheaper oil. Sales at retail stores also fell in June, suggesting that consumers are still cautious about spending, limiting demand for factory goods.
The Fed said that overall industrial production, which includes mining output and utilities, rose 0.3 percent, the best showing since November.
Mining, which includes oil and gas wells, rose 1 percent, as oil output increased. Utility output jumped 1.5 percent, the most since February, as people ramped up air conditioning for the summer.
However, there were signs in the Fed report that manufacturing output is recovering from weakness earlier this year. Factory production rose 1.4 percent at an annual rate in the April to June quarter, after shrinking 0.8 percent in the first quarter.
Outside auto manufacturing, output rose 0.3 percent in June, the most since November. Auto production fell 3.7 percent, likely reflecting a slowdown in sales in June.
Manufacturers are struggling to overcome several challenges, including the strong dollar, weak overseas growth, and cheaper oil. Sales at retail stores also fell in June, suggesting that consumers are still cautious about spending, limiting demand for factory goods.
The Fed said that overall industrial production, which includes mining output and utilities, rose 0.3 percent, the best showing since November.
Mining, which includes oil and gas wells, rose 1 percent, as oil output increased. Utility output jumped 1.5 percent, the most since February, as people ramped up air conditioning for the summer.
However, there were signs in the Fed report that manufacturing output is recovering from weakness earlier this year. Factory production rose 1.4 percent at an annual rate in the April to June quarter, after shrinking 0.8 percent in the first quarter.
Outside auto manufacturing, output rose 0.3 percent in June, the most since November. Auto production fell 3.7 percent, likely reflecting a slowdown in sales in June.
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