16-June-2026
Economy News
 
US Factory Production Flat in May; AI Investment Supporting Manufacturing
16-Jun-2026

U.S. factory production was unexpectedly unchanged in May after gains in ?the ?prior months, which some economists said were related to businesses ?building up inventory in anticipation of shortages and higher prices due to the war in the Middle East. Despite the flat reading in ?output reported by the Federal Reserve on Monday, an artificial intelligence spending boom by businesses is offering a lifeline to manufacturing, helping to offset some of the drag from import tariffs and the recent oil ?price shock. Business tax incentives for equipment investment are ?also supporting the sector.

News Source:- https://money.usnews.com/investing/news/articles/2026-06-15/us-manufacturing-output-unchanged-in-may-after-large-gain-in-april