Cold Weather Slams U.S. Factory Output, Likely To Hurt Growth
Source: REUTERS
10:10 a.m. CST, February 14, 2014
WASHINGTON (Reuters) - U.S. manufacturing output unexpectedly fell in January, recording its biggest drop in more than 4-1/2 years, as cold weather disrupted production in the latest indication the economy got off to a weak start this year.
Though consumer sentiment was steady in early February, there are worries the harsh weather, which has persisted in many parts of the country, could dampen the morale of households when it starts to stretch budgets through high bills for heating.
"The big question is whether the U.S. economy is slowing significantly or whether it is merely going through a soft patch caused by extreme weather. The evidence points to the latter," said Chris Williamson, chief economist at Markit in London.
Factory production fell 0.8 percent last month, the Federal Reserve said on Friday. It was the first drop since July and the biggest since May 2009, when the economy was still locked in recession. Output had increased 0.3 percent in December.
Read more: http://www.chicagotribune.com/business/sns-rt-us-usa-economy-output-20140214,0,483027.story