US auto posts biggest drop since recession, manufacturing output sinks


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US auto posts biggest drop since recession, manufacturing output sinks

On Friday, the 15th of February, a Federal Reserve report revealed that the US manufacturing data had dwindled deeply in January, mostly effectuated by the biggest fall in auto production since the era of recession, the latest indication that the US economy had been losing momentum.

The Federal Reserve’s data on Friday (February 15th) had added further worries on a wobbling US economy, as Thursday’s data brought forth a steep decline in US retail sales to a nine-year low.

Given the cascade of weaker reports, apart from growing woes in the Wall Street’s corporate earnings and moderation of inflation, the Fed is unlikely to raise interest rate again in a near-term outlook, proffering a slice of breathing space for the US economy.

Referring to Fed’s smart move to muzzle down the gauntlets, a chief economist at MUFG in New York, Chris Rupkey said, “It looks like Fed officials were smart to stop their gradual rate hikes as the economy seems to have entered a soft patch.

According to the Federal Reserve data released on Friday (February 15th), the manufacturing production was snapped by 0.9 percent in January, its biggest drop in eight months, and a large pull for US economy, as manufacturing accounts for 12 percent of United States’ economy.