U.S. factory output stalled in May after four months of gains, suggesting
supply‑chain disruptions tied to the Iran war and surging input costs may be
starting to weigh. U.S. data showed factory output essentially unchanged in May
while broader industrial production, including utilities and mining, rose 0.1%.
Earlier gains had been driven by customer stockpiling, higher defense orders and
continued data‑center construction; Monday’s figures imply rising costs could be
damping activity. A separate report showed producer prices rose YoY at their
fastest pace since 2022. Sector divergence was evident: non‑durables fell—led by
petroleum & coal products, plastics & rubber and textiles—while
data‑center‑related industries (computers & electronics, electrical equipment,
fabricated metals, machinery and primary metals) continued to expand.
