US factory output fell for a second straight month in June as motor vehicles and other goods fell, suggesting higher interest rates are taking a toll on the manufacturing sector.
Manufacturing production fell 0.5% last month after a decline by the same rate in May, the Federal Reserve said on Friday.
Economists polled by Reuters had forecast a 0.1% drop. Production increased 3.6% compared to June 2021.
Manufacturing, which accounts for 11.9% of the US economy, has been supported by strong demand for goods.
But spending is gradually returning to services and retailers are overstocked. A strong dollar as a result of tighter monetary policy could make US exports more expensive.
Production at auto plants fell 1.5% last month, while mining production rose 1.7%, still driven by oil and gas extraction as the war between Russia and Ukraine keeps oil prices high.
Utilities output fell 1.4% after rising 1.9% in May. Declines in utilities and manufacturing output outpaced the rise in mining, pushing overall industrial production down 0.2%.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
