In April, the United States saw its manufacturing output decrease for the first time in six months, as manufacturers grappled with higher import tariffs, leading to a weak start for the second quarter. According to data released by the Federal Reserve, manufacturing output fell by 0.4% in April, following a revised 0.4% increase in March. Excluding automobiles, manufacturing output decreased by 0.3%.
Overall industrial production remained flat, with utility output rising while mining and energy extraction declined. Manufacturing, which accounts for three-quarters of total industrial production, had previously experienced healthy growth in the first quarter as many customers increased orders ahead of tariffs imposed by President Donald Trump. Aircraft production also saw growth in recent months.
The decline in manufacturing output in April was primarily due to decreases in the production of automobiles, computers, and apparel. Consumer goods output, including automobiles, appliances, and electronics, fell for the second consecutive month. However, business equipment output saw a slight increase after recent strong growth. The report indicated that manufacturing capacity utilization dropped to 76.8%, while overall industrial capacity utilization remained stable.
