U.S. factory output dips in 2026
U.S. factory output contracted for the first time since 2026, decreasing by 0.3% in August according to Federal Reserve data, contrary to expectations of a 0.3% increase. This decline resulted from a slowdown in the production of business equipment and factories, amid rising production costs—particularly for oil prices and other materials—as well as supply chain disruptions caused by conflicts in the Middle East and Ukraine. Additionally, the capacity utilization rate dropped to its lowest level in five months at 75.7%. Despite the overall decline, the production of business equipment, defense, and aerospace equipment remained higher than the levels seen a year earlier, while the automotive sector experienced a 1.2% decrease.
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