Declining production could lead to tough times for manufacturing recruiters, according to data recently released by the Federal Reserve. The industrial output for manufacturers around the United States dropped 0.2 percent in May after falling 0.5 percent in April. Economists expected a 0.2 percent rise of production last month.
Manufacturing production, which accounts for 12 percent of the U.S. economy and more than 72 percent of industrial production, has been poor since December, according to Reuters.
Much of the decline has been in decreased sales of electrical equipment, appliances and components, fabricated metal products and wood products, Reuters reported. Certain areas of the field, such as car production and machinery, increased in May over April's output. Those areas that saw a rise in the last month could aid the American economy later in the year, according to Bloomberg.
Despite the recent setbacks, the economy for manufacturers is in better shape today than it was a year ago. Industrial production is up across the board from May 2014. The biggest spike occurred in nonindustrial supplies, which saw a 2.2 percent rise in sales.
Mining production did dip in May, the fifth consecutive month that industry saw a drop in production.
Is a bounce back ahead?
Factories across the country have seen limited production for a variety of reasons. The improving value of the dollar has hurt international exports, while the drop in oil prices has slowed the need for new equipment. John Ryding, chief economist at RDQ Economics in New York, told Bloomberg that it is unlikely the manufacturing field will be able to match its output from a year ago.
"The big picture is that manufacturing activity has gone nowhere," Ryding said to Bloomberg. "Manufacturing was a big source of economic activity in 2014, and now it's not contributing at all in 2015."
One area that could see a boom are supply chain recruiters, Among the major market groups, the Federal Reserve reported that only business equipment and supplies registered production gains in May.