Search
 
News

U.S. Industrial Production Is Falling

After steadily advancing from 2020 through early 2022, the Fed’s gauge of manufacturing output fell in June, down 0.3 percent from a year ago.

By Vince Golle | July 18, 2023 at 05:18 PM

U.S. industrial production fell last month in a broad retreat, reflecting a decline in manufacturing output against a backdrop of uneven goods demand. The June index of production at factories, mines, and utilities decreased 0.5 percent for a second month, Federal Reserve data showed Tuesday. Manufacturing output declined 0.3 percent in June, the most in three months.

After steadily advancing from 2020 through early 2022, the Fed’s gauge of manufacturing output is down 0.3 percent from a year ago. Production has been restrained by lackluster export markets, efforts to work down inventories, and more limited consumer spending on merchandise.

Output of consumer goods dropped 1.3 percent last month, the most since February 2021, reflecting decreased production in a broad range of categories including autos, appliances, and apparel. Output of materials also fell, while business equipment production was flat.

Metric Actual Median estimate
Industrial production (month-over-month) -0.5% +0.0%
Manufacturing output (month-over-month) -0.3% +0.0%

Still, manufacturing may benefit some in coming months as retailers get inventories more in line with sales and the pace of goods inflation slows.

Separate data on Tuesday showed retail sales rose by less than forecast, while an underlying measure of household spending pointed to a more resilient consumer at the end of the second quarter. According to the Fed’s production data, utility output decreased 2.6 percent, while mining eased 0.2 percent.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Recommended Stories

Fed Leaves Rates Unchanged

Fed Leaves Rates Unchanged

Craig Torres |

The majority of FOMC members expect to enact another rate hike before the end of this year.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.