Petrol prices hit US production

US industrial production unexpectedly fell in May, highlighting weaknesses in manufacturing and signalling that the world’s largest economy may be cooling.

Industrial output dropped 0.1% in May after April’s 0.8% rise, the Federal Reserve reported.

Car production has been notably hit as high petrol costs have dented demand for sport utility vehicles.

The drop is the first since January, after manufacturing saw a recovery in the early part of the year.

BBC