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U.S. factory output dips 0.1% in June on auto chip shortage

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Mannequin yr 2021 Ford Ranger vehicles on the meeting line at Michigan Meeting, Monday, June 14, 2021, in Wayne, Mich. Surging output of vehicles, vehicles and auto components pulled U.S. manufacturing facility manufacturing up 0.9% in Could. Including utilities and mines, total U.S. industrial manufacturing climbed 0.8% in Could from April, the Federal Reserve reported Tuesday. (AP Photograph/Carlos Osorio)

WASHINGTON (AP) — U.S. manufacturing facility output slid final month as a scarcity of laptop chips disrupted auto manufacturing.

Manufacturing manufacturing dipped 0.1% in June — third drop in 5 months, the Federal Reserve reported Thursday.

General, industrial prdouction — together with output at factories, mines and utilities — rose 0.4% final month after growing 0.7% in Could. Industrial output is up 9.8% from a yr earlier.

The chip scarcity pushed manufacturing of vehicles, vehicles and auto components down 6.6% in June. Excluding autos, industrial manufacturing rose 0.4% final month.

Utility output climbed 2.7% in June as Individuals cranked up the air con to battle a warmth wave throughout a lot of the nation. Mining output rose 1.4% on an uptick in oil and fuel manufacturing.

American business has been bustling because the coronavirus menace recedes, regardless of a scarcity of employees and hassle getting provides in time. The Institute for Provide Administration, an affiliation of buying managers, reported that its manufacturing ticked barely decrease final month in comparison with Could. Nevertheless it nonetheless got here in at 60.6 on a scale the place something above 50 indicators progress. Nonetheless, manufacturing facility hiring shrank, ISM discovered, largely as a result of producers are struggling to fill job openings because the economic system rebounds with sudden pace from the coronavirus recession.

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Huynh Nguyen

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