ARLINGTON, Va. -- The Federal Reserve reported that total industrial production fell 0.4 percent in June, while manufacturing production fell 0.6 percent. For the second quarter, manufacturing production fell at a 10.5 percent annual rate, indicating that the problems in the manufacturing sector are worse than those of the general economy, says Manufacturers Alliance/MAPI economist Daniel J. Meckstroth.
“Manufacturing has taken the brunt of the downturn because the housing collapse, cuts in consumer discretionary spending on goods, and a full-fledged investment retreat was made worse by an major inventory drawdown,” Meckstroth said. “Fortunately, there are many signs that the economy is now starting to bottom out."
Meckstroth adds that the restarting of auto industry factories in July will provide a positive push for the manufacturing sector, and that a turning point could be near.