US manufacturing slips 0.1% in March as car production falls
US manufacturing took a small step back in March 2026, dropping 0.1% and snapping its two-month growth streak.
The dip surprised economists, who were expecting a slight rise instead.
Most of the slowdown came from a sharp 3.7% fall in car production, along with less output from metal and machinery factories.
Year-on-year factory output up 0.5%
Even with this hiccup, factory production was still up 0.5% compared to last year, so there is some resilience here.
The Federal Reserve also mentioned that global tensions (like the U.S.-Israel-Iran situation) are adding uncertainty, driving up oil prices and making businesses think twice about hiring or investing right now.
Plus, overall industrial output and capacity usage dropped too, though the sector still grew earlier this year (Q1 2026).