U.S. industrial production dipped 0.1% in May

U.S. industrial production slipped 0.1% in May, primarily dragged by a drop in manufacturing caused by a major fire at a parts supplier for trucks.

The Federal Reserve said Friday that the manufacturing component of industrial production fell 0.7% in May largely because of this disruption in truck assemblies.

A May 2 fire damaged the main plant at the Meridian Magnesium Products of America factory in Eaton Rapids, Michigan, that makes motor vehicle parts. As a result, Ford had to temporarily lay off 7,600 workers as it cuts production of the F-Series pickup truck, the top-selling vehicle in America.

Output at factories for metal, electrical equipment and apparel also declined, along with the 6.5% drop for motor vehicles and parts.

Still, factory output has improved 1.7% over the past year and overall industrial production has increased 3.5%. Other reports point to continued gains for manufacturers, although the tariffs announced by the Trump administration have generated turmoil and uncertainty.

The utilities component of industrial output rose 1.1% in May. Mining output advanced 1.8%.

Read:

Outlook for Fed rate hikes and U.S. dollar

U.S. growth revised down to 2.2% in Q1