U.S. industrial production fell more than expected in May on a decline in utilities output and auto manufacturing, the Federal Reserve says today, a sign that the economy may be losing some steam in the second quarter.
Reuters reports industrial output declined 0.4% last month after a downwardly revised 0.6% increase in April.
Economists polled by Reuters had forecast industrial production slipping 0.2% last month.
The industrial sector measured by the U.S. central bank comprises manufacturing, mining, and electric and gas utilities.
It has shown tentative signs of green shoots after a downturn over the past 18 months that was due to weak global demand, a strong dollar and fall in oil prices.
However, the data showed that despite the dollar’s rally fizzling out and a rise in oil prices, industrial production remains tepid across the board.
Last month, manufacturing output fell 0.4% and the output of consumer goods declined 0.7%. A 2.2% drop in consumer durables reflected fewer automotive products but also declines for home electronics, appliances and furniture, the Fed said.
