Industrial Production Shrinks
U.S. manufacturing output contracted in May for the second time in three months while a gauge in New York state fell sharply in June, the latest worrisome signs the American economy could be cooling.
Factory production shrank 0.4 percent last month, the Federal Reserve said on Friday. Total industrial output, which includes output at factories, mines and utilities, declined 0.1 percent.
Analysts polled by Reuters had expected total industrial production to rise 0.1 percent.The declines were widespread within the factory sector. Output for durable — or long lasting — goods dropped 0.5 percent. Production for nondurables fell 0.2 percent.Utilities increased 0.8 percent.Capacity utilization, a measure of how fully firms are using their resources, slipped to 79.0 percent in May.