US .. Production production fell in another straight month in February, providing further evidence of a sharp decline in economic growth early in the first quarter.
On Friday, the Federal Reserve said production production fell 0.4 per cent last year, slowed down by declines in the production of motor vehicles, machinery and furniture. Data for January was revised to show that production in the factories fell 0.5 percent instead of decreasing 0.9 percent as previously reported.
Economists who were asked by Reuters had forecasts that production rose 0.3 percent in February. Production in the factories increased by 1.0 per cent in February from a year ago.
Motor vehicles and parts of production went down 0.1
February's production production decline, which added soft reports from retail to residential, suggesting that the economy lost significant momentum early in the first quarter. Goldman Sachs is forecasting gross domestic product to rise to 0.6 percent annual interest rate in the first quarter. The economy grew by 2.6 per cent in the fourth quarter.
Production activity, which accounts for about 12 percent of the economy, loses steam as the increase in capital expenditure from last year's $ 1.5 billion tax package disappears. Activity is also shrinking by a trade war between the United States and China, as well as last year's rise in dollars and softer global economic growth, damaging exports.