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China uses dairy factory to show it's getting back to workUpdated: 02/28/2020 9:29 PMBEIJING (AP) — As milk bottles and yogurt six-packs zipped past on a conveyor belt at a state-owned dairy, reporters heard a sales pitch from a Commun...
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Boeing blames incomplete testing for astronaut capsule woesUpdated: 02/28/2020 5:02 PMCAPE CANAVERAL, Fla. (AP) — Boeing acknowledged Friday it failed to conduct full and adequate software tests before the botched space debut of its ast...
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FCC proposes fines for phone companies that shared user dataUpdated: 02/28/2020 3:35 PMNEW YORK (AP) — U.S. regulators have proposed fining the four major U.S. phone companies more than $200 million combined for improperly disclosing cus...
US reports first drug shortage tied to virus outbreakUpdated: 02/28/2020 3:13 PMWASHINGTON (AP) — Health officials reported the first U.S. drug shortage tied to the viral outbreak that is disrupting production in China, but they d...
|Last Update: 9:36 AM ET 02/14/2020|
|US manufacturing output hit by Boeing troubles, slips 0.1%|
By CHRISTOPHER RUGABER
WASHINGTON (AP) - U.S. manufacturing output fell slightly in January, driven lower by Boeing's decision to halt production of its troubled 737 MAX aircraft.
The Federal Reserve said Friday that factory output declined 0.1% last month after eking out a 0.1% gain in December. Excluding the production of airplanes and parts, factory production rose 0.3%.
U.S. manufacturing has shown signs of recovering from a year-long downturn but is facing a fresh challenge from Boeing's troubles, which also affect hundreds of suppliers. Manufacturing output is down 0.8% in the past year, hurt by the U.S.-China trade war and slower global growth.
Overall industrial production, which includes output from mines and utilities, dropped 0.3% in January, held back by a 4% drop in utility production because of unseasonably warm weather.
Other reports suggest manufacturing is picking up, particularly outside aircraft production. The Institute for Supply Management, a trade group of purchasing managers, said earlier this month that factory activity expanded in January for the first time in six months.
The ISM - s survey found that new orders and production rose in January, and while factories still cut jobs, they did so at a slower pace.
The viral outbreak in China is also likely to damage the global economy and disrupt many manufacturers - international supply chains. Economists at Goldman Sachs forecast that the Boeing shutdown and coronavirus will lower the U.S. economy - s growth in the first three months of this year by roughly three-quarters of a percentage point to an annual rate of 1.7%.
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