U.S. industrial production slipped 0.1% in May, primarily dragged by a drop in manufacturing caused by a major fire at a parts supplier for trucks.
A May 2 fire damaged the main plant at the Meridian Magnesium Products of America factory in Eaton Rapids, Michigan, which makes motor vehicle parts. As a result, Ford had to temporarily lay off 7,600 workers as it cuts production of the F-Series pickup truck, the top-selling vehicle in America.
The Federal Reserve reports that the manufacturing component of industrial production fell 0.7% last month largely because of this disruption in truck assemblies.
Output at factories for metal, electrical equipment and apparel also declined, along with the 6.5% drop for motor vehicles and parts.
Still, factory output has improved 1.7% over the past year and overall industrial production has increased 3.5%. Other reports point to continued gains for manufacturers, although the tariffs announced by the Trump administration have generated turmoil and uncertainty.
The utilities component of industrial output rose 1.1% in May. Mining output advanced 1.8%. Â
