President Trump’s agenda includes a strong push for domestic production and foreign investment, although his plan will be met with many challenges given the amount of time it takes to create a factory and the higher wages that U.S. workers demand compared to other countries.
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During May, U.S. industrial production fell by 0.2% month-over-month compared to the estimate for 0.0%. Factory output rose by 0.1%, in line with the estimate. Trump’s volatile tariff policies have made it difficult for industrial producers to predict future business conditions and likely contributed to the fall.
Industrial Capacity Utilization Below Estimates
Capacity utilization, which represents the percentage of capacity used by industries, tallied in at 77.4%, below the estimate for 77.7% and falling from 77.7% in April. That presents a troubling signal, as it remains below the optimal rate of 85%. The low capacity utilization rate could signal falling demand or factory inefficiencies.
All four industrial stocks within the Dow Jones (DJIA) are in the red today on the industrial production data, as shown with TipRank’s Dow Jones Heatmap.
