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Slowing Auto Industry Threatening to Drag Down U.S. Economy

Automakers continue to cut production as sales slow.

by on Jun.15, 2017

GM is extending the summer shutdown at some plants, including this one in Fairfax, KS.

The U.S. auto industry was the little engine that could during the country’s recovery from the Great Recession, but it now may be turning into the anchor on an economy once again starting to sputter.

U.S. factory output slipped by 0.4% last month, a sharp turnaround from the 1.1% increase in April, the Federal Reserve reported on Thursday morning. While some industries continue to show strength, the weak figures for May coincide with growing production cuts by the U.S. auto industry.

Manufacturing News!

And the auto industry is facing still more jobs cuts in the months to come, industry analysts warn, especially if car sales don’t level out. GM, for one, has announced that it will extend its normal, two-week summer shutdown to as much as five weeks at some plants in the Midwest.

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