US industrial production dropped 0.2% in May due to declining demand

US industrial production fell by 0.2% in May, driven by weaker demand and a drop in utility output, according to Bloomberg.

Federal Reserve data showed a decline in US industrial output in May, following a revised 0.1% increase the previous month. Economists surveyed by Bloomberg had called for no change.

As reported by the news agency, US manufacturers are struggling to forecast demand due to President Donald Trump's unpredictable trade policies. The temporary deal with China has eased tensions somewhat. Meanwhile, Trump continues pushing his agenda to boost domestic manufacturing and attract foreign investment, using import tariffs as a means to raise federal revenue.

While several US corporations have announced long-term plans to expand domestic manufacturing capacity, many are holding back on modernization investments until Congress finalizes the tax and spending bill, according to Bloomberg.