U.S. manufacturing output fell for a second straight month in February and facto...
WASHINGTON - U.S. manufacturing output fell for a second straight month in February and factory activity in New York state hit nearly a two-year low this month, offering further evidence of a sharp slowdown in economic growth early in the first quarter.
“The economy is spinning its wheels and not gaining any traction yet in this soft patch produced by trade wars and stock market turbulence and the government shutdown,” said Chris Rupkey, chief economist at MUFG in New York.The Fed said manufacturing production dropped 0.4 percent last month, held down by declines in the output of motor vehicles, machinery and furniture. Data for January was revised up to show output at factories falling 0.5 percent instead of slumping 0.
The Atlanta Fed is forecasting gross domestic product will rise at a 0.4 percent annualized rate in the first quarter. GDP grew at a 2.6 percent pace in the fourth quarter. In a separate report on Friday, the New York Fed said its general business conditions index fell 5.1 points to a reading of 3.7 in February, the lowest since May 2017. It was the third consecutive monthly reading below 10, which the New York Fed said suggested “that growth has remained quite a bit slower so far this year than it was for most of 2018.”
The dollar was weaker against a basket of currencies on Friday, while U.S. Treasury prices rose. Stocks on Wall Street were trading higher.In a third report on Friday, the University of Michigan said its consumer sentiment index rose to a reading of 97.8 in early March from 93.8 in February. Strong consumer sentiment bodes well for consumer spending in the months ahead after spending appeared to have retrenched early in the first quarter.
“In addition to trade, risks to manufacturing stem from the labor market, as the scarce supply of workers will also limit growth,” said Stephen Ciccarella, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “We expect this headwind to intensify over the next few quarters as the labor market continues to tighten.”
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. manufacturing sector slowing as economy loses momentumU.S. manufacturing output fell for a second straight month in February and facto...
Read more »
U.S. retail sales rebound but not enough to jolt slowing economyU.S. retail sales rose modestly in January after a December drop that was even l...
Read more »
U.S. accuses Palestinians of manufacturing crisis over tax transferThe United States accused the Palestinians on Friday of manufacturing a crisis b...
Read more »
Oil rises on OPEC-led supply cuts, but slowing economy restricts gainsOil prices rose on Monday, lifted by Saudi oil minister Khalid al-Falih saying a...
Read more »
A trade deal won't save the world's largest economies from slowing down this yearEven if the US and China reach an agreement to end a trade war, the largest economies are still set to slow in coming months.
Read more »
U.S. data underscores slowing growth, muted inflationThe number of Americans filing applications for unemployment benefits increased ...
Read more »
U.S. consumer prices rise; underlying inflation slowingU.S. consumer prices rose for the first time in four months in February, but the...
Read more »
US manufacturing output falls for a second straight monthUS industrial production rose 0.1% in February, vs 0.4% increase expected
Read more »
Toyota ups investment in US plants to $13 billion, adds 600 manufacturing jobsJapanese automaker Toyota is upping its investment in the US by 30 percent to $13 billion by 2021, the company said Thursday.
Read more »
China's Premier Li says it is not realistic to decouple economies of China, U.S.It is not realistic to decouple the economies of the United States and China, Pr...
Read more »