US industrial output declines in April on manufacturing downturn

US industrial output declines in April on manufacturing downturn

Mubasher: US industrial output declined in April, due to a sharp drop in factory activity, while production of auto and auto components extended its decline.

Industrial production, a gauge of factory, mining and utility output, shrank by 0.5% last month, after gaining 0.2% in the prior month, data by the Federal Reserve Bank showed on Wednesday.

Production at US factories, which accounts for 75% of the country’s overall industrial output, dipped by 0.5%, led by a 2.6% plunge in motor vehicles and auto parts.

Manufacturing sector has struggled during the past year, mirroring weakness in auto sales and the global economy.

Output of mining sector, comprising oil and gas drilling activities, climbed by 1.6% during April, whereas production at utilities fell by 3.5%.

Capacity utilisation, which reflects the hurdles to operating factories, mines and utilities in the US, decreased by 0.6% to 77.9% during the month.

At 1:57 pm GMT, the EUR/USD pair fell by 0.18% to $ 1.1184.