US Factory Production Falls in May

Factory production unexpectedly declined in May as the slump in energy output deepened.
The 0.2 percent decrease at manufacturers followed a 0.1 percent increase in April, figures from the Federal Reserve in Washington showed Monday. Total industrial production, which also includes mines and utilities, also dropped 0.2 percent.

Production of consumer energy products declined for a third consecutive month, exacerbating a decrease in other non-durable goods such as foods and chemicals that swamped continued gains among automakers. The sluggish data signal that a stronger dollar and decrease in fuel prices are still rippling through the economy, holding back American factories.

“The global economic situation is not ideal,” Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in Stamford, Connecticut, said before the report. As a result, “any growth that you see in manufacturing is going to be predominantly driven by domestic demand.”

via Bloomberg

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza