Industrial Production in the U.S. Unexpectedly Fell in April
By Shobhana Chandra May 15, 2014 9:59 AM ET
Industrial production in the U.S. unexpectedly declined in April, held back by a plunge in utilities as temperatures warmed and a broad-based decrease in manufacturing.
Output at factories, mines and utilities decreased 0.6 percent after a 0.9 percent gain the prior month that was larger than previously reported, a report from the Federal Reserve showed today in Washington. The median forecast in a Bloomberg survey of 81 economists called for an unchanged reading. Manufacturing, which makes up 75 percent of total production, decreased 0.4 percent.
The disappointing result in April may signal a pause after the biggest back-to-back monthly gains in manufacturing since 2010, as factories rebounded from an unusually harsh winter. Deere & Co. (DE) is among companies projecting a pickup in demand and today’s report also contrasts with recent figures, such as the New York Federal Reserve’s Empire State index, that show the economy is on track for faster economic growth this quarter.
“Manufacturing is back at a more sustainable level; it’ll do OK,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut, who had forecast a 0.5 percent drop in industrial output. “I don’t see the decline as the start of a new downward trend. The gains in February and March exceeded underlying trends.”
Shares Drop
Stocks fell, with equities poised for a second day of losses, after Wal-Mart Stores Inc. forecast profit below estimates. The Standard & Poor’s 500 Index dropped 0.8 percent to 1,874.03 at 9:57 a.m. in New York.
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http://www.bloomberg.com/news/2014-05-15/industrial-production-in-the-u-s-unexpectedly-dropped-in-april.html
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