In another sign of the fragility of the US factory sector, production at factories, mines and utilities slipped for the ninth straight month in June, according to a Federal Reserve report released today.
The central bank said overall output slipped by a larger-than-expected 0.7 per cent in June, while manufacturing production, which comprises the largest portion of the overall data, dropped 0.8 per cent.
The June decline in total production was the ninth straight monthly fall, the longest stretch of negative readings since 1982.
May output fell 0.5 per cent, a revised reading from the initially reported 0.8 per cent fall.
The numbers underscore the weakness of the US factory sector in the current sluggishness of the US economy.
Eventhough the Federal Reserve has eased interest rates six times this year in a bid to boost growth, the slump in the factory sector could aid policymakers who wish to make another rate cut at the central bank's next policy-setting meeting on August 21st.
Part of the decline in durable goods was due to a slide in car and truck production, which fell to an annual rate of 11.71 million from its 11.84 million pace seen in May.
The Fed said medium and heavy truck production was down by more than 40 per cent from the level seen in June 2000.
But there was weakness even outside the automotive sector. Production of high-tech goods, including computers, semiconductors and communications equipment, fell by 1.6 per cent in June.
Mining output fell by 0.4 per cent in the month, while utilities production was the only major category to post a gain, rising 0.9 per cent.