U.S. Factory Production Falls in April

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U.S. factory production saw an unexpected decline in April, primarily due to a drop in motor vehicle output. According to the Federal Reserve, manufacturing output decreased by 0.3% last month, following a revised 0.2% increase in March. This was contrary to economists’ expectations, who had forecast a 0.1% rise.

Year-on-year, factory production fell by 0.5% in April. Higher borrowing costs have continued to constrain manufacturing, which constitutes 10.4% of the economy. Motor vehicle and parts output dropped by 2.0% after a 2.8% increase in March. Durable goods manufacturing also saw a decline of 0.5%.

Despite these declines, there were some positive areas. Production of primary metals, computer and electronic products, aerospace, and miscellaneous transportation equipment saw increases, offsetting some of the losses in other sectors.

Source: Vanguard

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