U.S. factory output slips in August, led by auto and aerospace declines

In August, U.S. manufacturing contracted 0.3%, the first monthly decline of the year, according to Federal Reserve data. The downturn was driven primarily by a 1.2% fall in motor vehicle and parts output and a matching 1.2% drop in aerospace and related transportation equipment, which together explained roughly half of the overall slide. Smaller declines were recorded in furniture, nonmetallic mineral products, plastics, rubber, primary metals and durable goods, while computer and electronic product output fell 0.5%.

Some industries, including machinery, food, beverage, tobacco and apparel, continued to grow modestly. Overall industrial production remained flat thanks to gains in utilities and mining, but factory capacity utilization slipped to 75.7%, its lowest level since March.