Production in U.S. factories remains stagnant.
Production in the US manufacturing industry remained unchanged in April. A statement released in Washington by the Federal Reserve revealed that overall production in sectors such as industry, utilities, and mining also stayed the same as the month before. Experts predicted a marginal rise of 0.1%, but production only grew by 0.1% in March according to revised data (previously reported as 0.4%).
Diving deeper into the US industrial sector, there was a decline of 0.3% in manufacturing itself in April. Experts anticipated an increase of 0.1% after a revised 0.2% improvement in March.
Despite the sluggish manufacturing output, the strong American economy means the Federal Reserve faces no immediate need to reduce its main interest rate (5.25-5.50%). Some analysts speculate that they might make their first cut in September.
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The USA's stagnant production in April also affected the overall trade processing, leading to a minor decrease in export figures. This follows the same trend observed in the manufacturing sector, where production increased by only 0.1% in March, according to revised data.
In the context of global trade, the lack of significant growth in US production could potentially impact foreign partners relying on American goods for their own industries. This may prompt some countries to seek alternative suppliers to maintain their own production levels.
In the midst of this production stagnation, some analysts suggest that the USA might reconsider its trade policies to stimulate domestic production and boost exports, with a focus on industries showing promising growth potential.
Source: www.ntv.de
