U.S. manufacturing output unexpectedly fell in April, driven by a decline in motor vehicle production, according to data released by the Federal Reserve on Thursday.
Manufacturing output dropped by 0.3% last month, following a downwardly revised 0.2% increase in March. This downturn defied economists’ expectations of a 0.1% rise after a previously reported 0.5% increase in March.
Year-over-year, factory production declined by 0.5% in April. The manufacturing sector, which constitutes 10.4% of the U.S. economy, continues to struggle under the weight of higher borrowing costs.
The recent data aligns with a survey from the Institute for Supply Management, which indicated that manufacturing regressed in April after experiencing growth in March for the first time in 18 months.
Motor vehicle and parts production saw a sharp 2.0% decrease in April, following a 2.8% increase in March. Durable goods manufacturing also faced a downturn, with production dropping by 0.5%.
Notable declines were observed in the production of electrical equipment, appliances and components, as well as wood products. However, there were increases in the production of primary metals, computer and electronic products, aerospace, and miscellaneous transportation equipment.
