Production as a whole – in addition to industry, suppliers and mining are also taken into account here – grew by 0.2 percent, only half as much as expected.
(Photo: imago images/ZUMA Wire)
Washington The US industry surprisingly reduced its production in May. It shrank by 0.1 percent from the previous month, as the central bank (Fed) announced on Friday in Washington. Economists polled by Reuters had expected growth of 0.3 percent.
In April there was still an increase of 0.8 percent. Production as a whole – in addition to industry, suppliers and mining are also taken into account here – grew by 0.2 percent, only half as much as expected.
Because of the highest rate of inflation in more than 40 years, the US Federal Reserve has raised its key interest rate more than it has since 1994. It decided on Wednesday to raise the rate by 0.75 percentage points to the new range of 1.50 to 1.75 percent. This makes credit for investment and consumption more expensive, which in turn could slow down the upturn in the world’s largest economy.
More: Largest rate hike since 1994 – US Federal Reserve raises interest rates by 0.75 percentage points
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