US industrial production fell in May by most since January 2014, Bloomberg informs. Factories volumes dropped by 0,7%. Output including mining and utilities declined by 0,1%. Capacity utilization measuring how much plants are used reduced from 78,1% to 77,9%.

Such decline was largely due to disruption at trucks assembly lines after fire at parts supplier’s plant. Excluding motor vehicles and parts manufacturing, which fell by 6,5%, production decreased by 0,2% only after 0,8% growth last month.

Production accounts for 12% of US economy.

Other reports provide more optimistic picture. Orders growth was the highest in 14 years, materials prices continue increasing.

Current threats to manufacturing include gaining dollar that can present a problem for American exporters and US tarrifs. At the same time, reduction in taxes and strong labor market that stimulate demand will support business investments in the near term.

Utility production rose by 1,1%, and mining by 1,8%. Oil and gas production increased by 3,9%. Manufacturing of customer goods dropped by 1%, equipment volumes decreased by 1,1%.