Wednesday, September 2nd10.3°C
26774

US factory output fell 0.4 per cent in April after 2 strong months

WASHINGTON - U.S. factory output took a breather in April after two months of strong growth, as manufacturers produced less furniture, machinery and plastics.

The Federal Reserve said Thursday that factory production fell 0.4 per cent from the previous month after rising a revised 0.7 per cent in March and 1.5 per cent in February. Manufacturing output has risen a solid 2.9 per cent over the past year.

The decline appears to be a temporary setback that doesn't have economists too worried.

"We are not concerned by the drop in industrial production, because it was likely a one-time event" given healthy signals from other recent measures of manufacturing, said economists at Deutsche Bank Securities in a note to clients.

The Institute for Supply Management, a group of purchasing managers, has reported that U.S. manufacturing grew faster in April than March. Its manufacturing index rose to 54.9 last month from 53.7 in March as exports rose and factories stepped up hiring. Any reading above 50 signals growth.

The Commerce Department has said orders to U.S. factories for long-lasting manufactured goods showed decent gains in February and March.

Overall industrial output, which includes manufacturing, mining and utilities, fell 0.6 per cent in April, the Fed said. Output at utilities plunged 5.3 per cent; households used less heat as temperatures rose.

The drop in manufacturing output was more troubling, though economists say it probably just means factories eased back a bit after robust gains in February and March.

"Manufacturing was surprisingly weak, although the decline follows a strong finish" to the first quarter, said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.

The economy is picking up momentum after stalling during the nasty winter. The economy expanded at an annual pace of 0.1 per cent from January through March. Economists expect the pace to pick up to 3 per cent or faster this quarter and for the rest of the year.

Hiring also has been healthy. U.S. employers added 238,000 jobs from February through April, the fastest three-month pace in more than two years.

The Canadian Press


Read more Business News

27657


Recent Trending




Today's Market
S&P TSX13545.25+63.35
S&P CDNX550.05+2.08
DJIA16351.38+293.03
Nasdaq4749.98+113.87
S&P 5001948.86+35.01
CDN Dollar0.7542+0.0005
Gold1132.00-0.50
Oil46.25+0.01
Lumber235.10+1.10
Natural Gas2.646-0.002

 
Okanagan Companies
Pacific Safety0.22+0.05
Knighthawk0.010.00
QHR Technologies Inc1.19+0.01
Cantex0.04-0.01
Anavex Life Sciences1.25-0.07
Metalex Ventures0.055+0.005
Russel Metals20.87-0.34
Copper Mountain Mining0.61-0.01
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.08-0.01
Decisive Dividend Corp2.62+0.12

 



27126

FEATURED Property
23066072350 Benvoulin Road
3 bedrooms 1 baths
$449,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_



26376




Member of BC Press Council


27438