- Fed
US industrial production declined more than expected in March as output dropped broadly, the latest sign that economic growth faltered in the first quarter. Industrial output fell 0.6% last month following a downwardly revised 0.6% decrease in February, according to the Federal Reserve. Industrial production slipped at an annual rate of 2.2% in the first quarter. The report joined data on retail sales, business spending, trade and wholesale inventories in indicating that economic growth slowed at the turn of the year. Growth estimates for the first quarter are as low as a 0.2% annualized rate. The world's number one economy grew at a 1.4% rate in the fourth quarter. However, given a strong labour market, the slowdown in growth is likely to be temporary.
A separate report showed US consumer confidence unexpectedly declined in early April for the fourth straight month, as concerns about surging gasoline prices and the broader economy weighed on sentiment. The Thomson Reuters/University of Michigan preliminary Consumer Confidence Index slid to 89.7 points in April, compared with the final 91.0 reported in March, when it had dipped to a fresh five-month low. The Current Economic Conditions sub-index ticked down to 105.4, down from 105.6 in March, while the Index of Consumer Expectations plunged to 79.6 in April, sharply lower than 81.5 reported previously.
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