US. Manufacturing production fell in another straight month in February and provided further evidence of a sharp slowdown in economic growth at the beginning of the first quarter.
The Federal Reserve said on Friday that manufacturing production fell by 0.4 percent last month and was down by the downturn in the production of motor vehicles, machinery and furniture. The data for January were revised to show that production at factories fell by 0.5 per cent instead of lowering 0.9 per cent as previously reported.
Economists demanded by Reuters had projected that manufacturing production increased by 0.3 percent in February. Production at factories increased 1
Motor vehicles and parts of production fell 0.1 percent last month after losing 7.6 percent in January. Excluding motor vehicles and parts, manufacturing production declined by 0.4 per cent last month.
February, manufacturing production sent to soft reports from retail to homes to suggest that the economy lost significant momentum at the beginning of the first quarter. Goldman Sachs forecasts gross domestic product will rise to 0.6 percent annual rate during the first quarter. The economy grew by 2.6 per cent in the fourth quarter.
The manufacturing operations, which account for about 12 percent of the economy, lose steam because the increase in capital expenditure from last year's 1.5 billion tax tax package disappears. The activity is also crushed by a trade war between the United States and China, as well as last year's increase in the dollar and softening global economic growth, which damages exports.