U.S. manufacturing output remained unchanged in May, falling short of economists’ expectations. Stronger production of durable goods, including motor vehicles, was offset by a decline in non-durable manufacturing.
Manufacturing Output Misses Forecasts
The Federal Reserve reported on Monday that factory production was flat in May.
Economists surveyed by Reuters had expected manufacturing output to increase by 0.2%. The weaker-than-expected result followed a strong performance in April.
The Federal Reserve revised April’s manufacturing gain higher to 0.7%. The previous estimate had shown an increase of 0.6%.
Factory Production Rises From a Year Earlier
Despite the lack of monthly growth, U.S. factory production remained higher compared with the same period last year.
Manufacturing output increased by 1.4% year over year in May. This suggests that the sector continued to expand on an annual basis, even as monthly momentum slowed.
Durable Goods Production Strengthens
Production of durable manufactured goods rose by 0.8% in May.
Durable goods include products designed to last for several years, such as motor vehicles, machinery and household appliances.
Strength in these industries helped prevent overall manufacturing output from declining during the month.
Non-Durable Manufacturing Declines
By contrast, production of non-durable goods fell by 0.9%.
This category includes products such as food, clothing, textiles and other goods that are consumed or replaced relatively quickly.
The decline in non-durable manufacturing fully offset the increase in durable goods production, leaving total U.S. factory output unchanged in May.
