U.S. manufacturing output unexpectedly weak in May
An employee welds pipe at Pioneer Pipe in Marietta, Ohio.
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Production at U.S. factories unexpectedly fell in May, the latest sign of cooling economic activity as the Federal Reserve aggressively tightens monetary policy to tame inflation.
The first decline in manufacturing output since January reported by the Fed on Friday followed news this week of a drop in retail sales last month as well as steep declines in homebuilding and permits. The weakness in production also reflects a shift in spending from goods to services.
“It adds to the evidence that the economy is slowing,” said Andrew Hunter, a senior U.S. economist at Capital Economics. “But there is still little in activity data to suggest a recession is on the horizon, or to dissuade the Fed from pressing ahead with more aggressive policy tightening.”
Manufacturing output dipped 0.1% last month after increasing 0.8% in April. Economists polled by Reuters had forecast…
