Declining output of cars and machinery led U.S. factory production to fall unexpectedly in April, a sign the economy is losing a step as a trade war with China intensifies.
The Federal Reserve said on Wednesday manufacturing production fell 0.5 percent last month, the third decline in four months.
Economists polled by Reuters had forecast manufacturing output would edge up 0.1 percent during the month.
Motor vehicles and parts production dropped 2.6 percent in April. Inventories at U.S. businesses have swelled in recent months, with some trying to stock their shelves before new increases in tariffs on Chinese goods took hold. An inventory overhang in the automobile sector is weighing on production.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.