clear
Tuesday September 1st, 2015 10:27PM

US factory output rebounded in May after April dip

By The Associated Press
WASHINGTON (AP) -- U.S. manufacturing output rose in May after in shrinking in April, led by greater production of autos, computers and furniture.<br /> <br /> The gains show that Americans, buoyed by steady job gains, are buying more cars while businesses are ordering more machinery and other goods. Those trends are fueling factory production and driving growth. Analysts think the U.S. economy is rebounding after contracting in the first three months of the year.<br /> <br /> Factory output rose 0.6 percent in May after dipping 0.1 percent the previous month, the Federal Reserve said Monday. April's figure was revised upward from an initial estimate of a 0.4 percent decline.<br /> <br /> Overall industrial production, which includes manufacturing, mining and utilities, also rose 0.6 percent in May. It had fallen 0.3 percent in April.<br /> <br /> Mining output, which includes oil and gas production, jumped 1.3 percent, while utility output declined 0.8 percent, its fourth straight drop.<br /> <br /> "If you're looking for yet another sign of an upturn ... you've got one," said Jennifer Lee, an economist at BMO Capital Markets.<br /> <br /> The nation's factories are running at 77 percent capacity, the most in six years, though still 1.7 percentage points below the long-run average. As factories move closer to full capacity, factory owners will face pressure to invest in plants and equipment, a trend that could boost the economy.<br /> <br /> The data follows other recent reports that also point to steady increases in factory production. Auto sales reached a nine-year high in May as Americans ramped up purchases of SUVs and pickup trucks.<br /> <br /> A survey this month by the Institute for Supply Management, a trade group of purchasing managers, found that manufacturing expanded faster in May than in April. Growth was broad based across nearly all the 18 sectors the survey covers.<br /> <br /> And the ISM survey's measure of orders rose, a sign that output should remain healthy in the months ahead.<br /> <br /> Manufacturers are hiring more to keep up with demand. Factories added 10,000 positions in May, and the average work week for manufacturing employees grew.<br /> <br /> Greater factory output would help drive growth after the U.S. economy shrank at a 1 percent annual rate in the first quarter, though recent reports indicate that the contraction was probably larger. Many economists now think the government will say the economy shrank at a 2 percent pace when it revises its estimate next week.<br /> <br /> Still, most analysts expect the economy to rebound and grow at a roughly 3.5 percent annual pace in the second quarter and at a 3 percent rate in the second half of the year.
© Copyright 2015 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 8 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 8 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 8 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 8 months ago )
Business News
Gainesville City Council has short fuse on new fireworks law
The Gainesville City Council voted unanimously Tuesday evening to exercise the limited influence left under their jurisdiction by the General Assembly in the spectrum of consumer fireworks.
10:26PM ( 1 minute ago )
Senate GOP leader says it will take new president to end Planned Parenthood's federal funding
WASHINGTON (AP) — The Senate's top Republican is conceding that his party will have to await the next president before it can cut off federal funds that go to Planned Parenthood, prompting heated rebuffs from conservatives.
9:14PM ( 1 hour ago )
Hall Co. authorities searching on foot for suspect
Hall County Sheriff's authorities are searching for a man that ran from a traffic stop.
5:13PM ( 5 hours ago )
US, global stocks fall sharply; Dow down 469 at close
NEW YORK (AP) — Markets are turning turbulent again after investors were unnerved by more signs of weakness in China, the world's second-largest economy.U.S. stocks sank 3 percent Tuesday, their third...
4:40PM ( 5 hours ago )
Code Orange air quality alert for Hall, other north Ga. counties
An air quality alert has been issued for Hall and a number of other north Georgia counties for Wednesday.
4:38PM ( 5 hours ago )