Updated
Updated · Bloomberg · Jul 17US Manufacturing Output Stalls in June as Durable Goods Decline
3 articles · Updated · Bloomberg · Jul 17Summary
- US factory output was unchanged in June, missing economists’ median forecast for a 0.1% increase after May’s gain was revised up to 0.1%.
- Durable goods led the weakness, with machinery declines dragging on manufacturing production.
- Manufacturing accounts for about three-fourths of total industrial production, making the flat reading a notable brake on the broader factory sector.
Insights
Why are prices for durable goods rising if American factory output has completely stalled? Is US manufacturing facing a temporary slump or a permanent high-tech transformation? With consumer demand weakening, why are companies still betting big on factory automation and machinery?