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Economists surveyed by Bloomberg, expected an increase in the same amount. For six months, industrial production in the United States shows no growth, whilst the last two months has been falling despite the forecasts of the market.
The pace of contraction in industrial production in April was revised from 0.3% to 0.5%.
The decrease is caused by a drop in production of energy for the third consecutive month.
Production in the processing industry (it accounts for 75% of total industrial output) dropped last month by 0.2%, while experts on average expected growth of 0.3%. Increasing the index in April is revised from zero to 0.1%.
Weak demand for US products in foreign markets, largely due to strengthen the dollar, continues to negatively affect the volume of industrial production in the United States.
- The situation in the world economy is far from ideal, so that the growth of industrial production is provided mainly by domestic demand, - said the chief economist at Amherst Pierpoint Securities LLC Stephen Stanley.
Capacity utilization in the US in May fell to 78.1% from a revised 78.3% in April. It was expected to increase to 78.3% from 78.2% previously announced in April.
The share of the manufacturing sector accounts for about 12% of US GDP.
Meanwhile, retail sales in the US last month rose 1.2% compared with April, the country’s Ministry of Commerce data shows.
The change coincided with the consensus forecast of economists surveyed by Bloomberg. According to adjusted data, retail sales in April increased by 0.2%, whereas zero change was reported previously.
The acceleration of growth in retail sales suggests the consumer sector recovers after a very restrained start of the year, analysts said. The data show that Americans are willing to spend money on a great range of products and services.
May retail sales excluding autos, gasoline and building materials - the indicator used for the calculation of US gross domestic product - grew by 0.7% compared with April, while analysts had expected an increase of 0.5%.
Retail sales excluding automobiles rose in May by 1% after rising 0.1% in April, while economists had forecast the index to rise 0.8%.
Sales of 11 of the 13 major categories of goods and services at retail grew in May, a decrease was observed only for the goods of health care and medical services. Including sales of clothing increased by 1.5%, sporting goods - by 0.8%, automotive fuel - by 3.7%, motor vehicles and parts - 2%.
Also, it was reported on Wednesday that the cost of imported goods in the US last month increased by 1.3% compared with April and fell by 9.6% in annual terms. Analysts had forecast an increase of the first indicator by 0.8% and decrease by 10% the second.
source: bloomberg.com
The pace of contraction in industrial production in April was revised from 0.3% to 0.5%.
The decrease is caused by a drop in production of energy for the third consecutive month.
Production in the processing industry (it accounts for 75% of total industrial output) dropped last month by 0.2%, while experts on average expected growth of 0.3%. Increasing the index in April is revised from zero to 0.1%.
Weak demand for US products in foreign markets, largely due to strengthen the dollar, continues to negatively affect the volume of industrial production in the United States.
- The situation in the world economy is far from ideal, so that the growth of industrial production is provided mainly by domestic demand, - said the chief economist at Amherst Pierpoint Securities LLC Stephen Stanley.
Capacity utilization in the US in May fell to 78.1% from a revised 78.3% in April. It was expected to increase to 78.3% from 78.2% previously announced in April.
The share of the manufacturing sector accounts for about 12% of US GDP.
Meanwhile, retail sales in the US last month rose 1.2% compared with April, the country’s Ministry of Commerce data shows.
The change coincided with the consensus forecast of economists surveyed by Bloomberg. According to adjusted data, retail sales in April increased by 0.2%, whereas zero change was reported previously.
The acceleration of growth in retail sales suggests the consumer sector recovers after a very restrained start of the year, analysts said. The data show that Americans are willing to spend money on a great range of products and services.
May retail sales excluding autos, gasoline and building materials - the indicator used for the calculation of US gross domestic product - grew by 0.7% compared with April, while analysts had expected an increase of 0.5%.
Retail sales excluding automobiles rose in May by 1% after rising 0.1% in April, while economists had forecast the index to rise 0.8%.
Sales of 11 of the 13 major categories of goods and services at retail grew in May, a decrease was observed only for the goods of health care and medical services. Including sales of clothing increased by 1.5%, sporting goods - by 0.8%, automotive fuel - by 3.7%, motor vehicles and parts - 2%.
Also, it was reported on Wednesday that the cost of imported goods in the US last month increased by 1.3% compared with April and fell by 9.6% in annual terms. Analysts had forecast an increase of the first indicator by 0.8% and decrease by 10% the second.
source: bloomberg.com
