According to analysts at Wells Fargo, manufacturing activity remains weak and they expect the slowdown in global growth, strong dollar and lingering trade tensions to continue to weigh on production and investment.
“Industrial production rose 0.4% in May, led by a 2.1% rise in utilities. Mining ticked up 0.1% due to oil & gas extraction, although a drop in new drilling points to a slowdown ahead.”
“Manufacturing output edged up 0.2%, which was the first monthly rise this year. A rebound in motor vehicles helped drive the gain, but with sales under pressure, we suspect the pickup will be short-lived and modest compared to earlier this cycle.”
“Business equipment rose 0.2%, but that only partially reversed last month’s 1.5% drop. Industrial equipment strengthened, but transit equipment was once again held down by Boeing-related weakness in commercial aircraft.”
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