US Factory Production Fell in April

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.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza