U.S. factory output dips 0.1% in June on auto chip shortage

Jul 15, 2021, 6:32 AM | Updated: 3:15 pm

WASHINGTON (AP) — U.S. factory output slid last month as a shortage of computer chips disrupted auto production.

Manufacturing production dipped 0.1% in June — third drop in five months, the Federal Reserve reported Thursday.

Overall, industrial production — including output at factories, mines and utilities — rose 0.4% last month after increasing 0.7% in May. Industrial output is up 9.8% from a year earlier.

The chip shortage pushed production of cars, trucks and auto parts down 6.6% in June. Excluding autos, industrial production rose 0.4% last month.

“The manufacturing sector continues to be hobbled by supply constraints,” said Stephen Stanley, chief economist at Amherst Pierpont Securities. “The highest profile example is the struggle by automakers to manage through a chip shortage.”

Utility output climbed 2.7% in June as Americans cranked up the air conditioning to battle a heat wave across much of the country. Mining output rose 1.4% on an uptick in oil and gas production.

American industry has been bustling as the coronavirus threat recedes, despite a shortage of workers and trouble getting supplies in time. The Institute for Supply Management, an association of purchasing managers, reported that its manufacturing ticked slightly lower last month compared to May.

But it still came in at 60.6 on a scale where anything above 50 signals growth. Still, factory hiring shrank, ISM found, largely because manufacturers are struggling to fill job openings as the economy rebounds with unexpected speed from the coronavirus recession.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Olga Rudneva walks along the edge of a crater Thursday, Aug. 18, 2022, from a rocket strike yesterd...
Associated Press

2 Russian villages evacuated after fire at munitions depot

KYIV, Ukraine (AP) — The residents of two villages in Russia’s Belgorod region on Ukraine’s northeastern border were evacuated after a fire at a munitions depot near the village of Timonovo, the region’s governor said Friday. There were no casualties in the late Thursday blaze, Gov. Vyacheslav Gladkov said. The fire came days after another […]
4 hours ago
In this photo provided by the Malacanang Presidential Photographers Division, Philippine President ...
Associated Press

US lawmakers meet detained Philippine opposition leader

MANILA, Philippines (AP) — U.S. Sen. Edward Markey, who was once banned from the Philippines by former President Rodrigo Duterte, on Friday met a long-detained Filipino opposition leader, whom he says was wrongfully imprisoned under Duterte and should be freed. Markey, a Democrat from Massachusetts, and a group of U.S. legislators met former Sen. Leila […]
4 hours ago
FILE - President Joe Biden speaks during an event in the East Room of the White House, Aug. 10, 202...
Associated Press

Biden to host unity summit against hate-fueled violence

WILMINGTON, Del. (AP) — President Joe Biden will host a White House summit next month aimed at combating a spate of hate-fueled violence in the U.S., as he works to deliver on his campaign pledge to “heal the soul of the nation.” The White House announced Friday that Biden will host the United We Stand […]
4 hours ago
Associated Press

China jails Canadian tycoon for 13 years for finance crimes

BEIJING (AP) — A Chinese-born Canadian tycoon who disappeared from Hong Kong in 2017 was sentenced Friday to 13 years in prison for a multibillion-dollar string of financial offenses and his company was fined $8.1 billion, a court announced. Xiao Jianhua was convicted of misusing billions of dollars of deposits from banks and insurers controlled […]
4 hours ago
A ship navigates along the Jialing River near its meeting with the Yangtze River in southwestern Ch...
Associated Press

Yangtze shrinks as China’s drought disrupts industry

CHONGQING, China (AP) — Ships crept down the middle of the Yangtze on Friday after China’s driest summer in six decades left one of the mightiest rivers barely half its normal width and set off a scramble to contain the damage to a weak economy in a politically sensitive year. Factories in Sichuan province and […]
4 hours ago
Tracy Carlos uses a candlelight to do her homework in Mabvuku on the outskirts of Harare on Wednesd...
Associated Press

Zimbabweans hit by 257% inflation: Will gold coins help?

HARARE, Zimbabwe (AP) — After working as an overnight security guard at a church in Harare’s impoverished Mabvuku township, Jeffrey Carlos rushes home to help his wife fetch water to sell. Prolonged water shortages mean most residents of the capital city of more than 2.4 million must source their own water. Carlos is lucky because […]
4 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
...
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
U.S. factory output dips 0.1% in June on auto chip shortage