According to data released on Thursday, production at U.S. factories unexpectedly declined due to a drop in motor vehicle output in April.
The Federal Reserve reported that manufacturing output fell by 0.3% last month, following a revised 0.2% increase in March.
Economists surveyed by Reuters had predicted a 0.1% increase in factory output, following a previously reported 0.5% advance in March.
Factory production also fell by 0.5% compared to the previous year. Manufacturing, which makes up 10.4% of the economy, continues to be limited by higher borrowing costs.
A survey conducted by the Institute for Supply Management earlier this month showed a regression in manufacturing in April, following growth in March for the first time in 1-1/2 years.
Motor vehicle and parts output decreased by 2.0% last month after a 2.8% increase in March. Durable goods manufacturing production also declined by 0.5%.
There were also decreases in the production of electrical equipment, appliances, and components, as well as wood products.
However, production of primary metals, computer and electronic products, aerospace, and miscellaneous transportation equipment increased.