U.S. factory production declined 0.3% in August after seven consecutive monthly increases, according to data reported by Reuters from the Federal Reserve. The pullback was concentrated in durable goods, including motor vehicles and computer equipment, while overall industrial production was flat.
The decline comes as manufacturers contend with higher borrowing costs, elevated energy prices and uneven demand. At the same time, investment tied to artificial intelligence infrastructure and defense spending has continued to support parts of the industrial sector.
Manufacturing accounts for roughly one-tenth of U.S. economic output. The August reading adds to a mixed picture in which consumer spending and hiring have remained relatively resilient while interest rates and input costs create pressure for producers.