AI investments sustain US factory output

U.S. factory output remained unexpectedly steady in May, supported by artificial intelligence investments that help bolster the sector, despite rising concerns over supply chain disruptions due to tensions in the Middle East and a potential halt in the Strait of Hormuz. Industrial production rose by 0.7% in April and May respectively, reflecting the impact of tax incentives and AI technology in offsetting the effects of rising prices and tariffs. Additionally, durable goods production increased by 0.8%, while electronic devices saw a rise of 0.9% on a monthly basis in May, with an annual growth of 10.3%.

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