Weather conditions drops the U.S. factories products to its lowest level since 2009
World's largest economy recorded a weak start in 2014
Factory production declined in the United States unexpectedly last month registered the biggest decline since 2009 with the sector affected by frigid weather in the latest sign that the world's largest economy registered a weak start this year, according to Reuters. The Federal Reserve reported today that industrial production fell 0.5 percent last month, the largest decline since may ' February ' 2009 after an increase of 0.2 in December ' Dec '. The Fed attributed the drop in factory production, is the first since April ' April ' past to frigid weather curtailed production in certain areas of the country, add twice the factory production data for employment and retail sales that suggest the slowdown growth early in the first quarter of this year due to the effects of weather.
The data showed a rise in the number of applications for unemployment benefits last week, underscoring the fragility of the improvement in the labor market situation, according to the US Department of labor has increased demands for unemployment benefits during the week ending 8 February by 8,000 to 339 thousand request for 331 thousand in the previous week, and the average forecast of analysts polled by Bloomberg News Agency the economic views of 330,000. Janet the new President of the Federal Reserve Board-the Central Bank-said earlier this week that the US economy still needs to review the pace of layoffs before the positive impact of the new posts on consumer spending in America, adding that the recovery of the labor market is still far from complete.
Ryan sweet said economic analyst at Moody's Analytics ' Enterprise ' economic consultants that the labor market is evolving quickly in any direction is what appears in the oscillation in the preparation of requests for unemployment benefit, published weekly. According to a survey there is stability in US consumer sentiment in early ' February ' American optimism recedes because of concern over the current financial conditions, the initial reading of the survey conducted by Thomson Reuters and the University of Michigan's index of consumer confidence 81.2 per cent, unchanged from the final reading last month, analysts polled by Reuters had expected a reading of opinions this month when 80.6 per cent. And the current economic situation index descended to 94.0 from 96.8% in ' January ' compared with the average forecast of economists of 95.9 per cent but the consumer expectations index rose to its highest level in six months to 45.4 from 71.2 per cent, exceeding expectations of 71.6 percent.
Inflation expectations gauge increased for the year to 3.3 percent, the highest level in five months as compared with 3.1 per cent last month, while inflation prospects scale settled five to ten years at 2.9 per cent. Meanwhile, retail sales in the United States during ' January ' the highest rate since ' June ' 2012 under adverse weather conditions and the fragility of the improvement in the labor market. The US Commerce Department reported that retail sales fell last month by 0.2 percent after data showed the average also declined 0.1 percent during December ' December '. The preliminary estimates of retail sales in December ' ' last announced earlier had indicated an increase in sales before saying the amended results balked.
And the Bloomberg news agency attributed the economic contraction in retail sales last month to weak job growth and low wage growth in the last two months along with a cold wave that hit the areas in the United States reduced the desire of shoppers buying in the wake of the Americans ' consumer spending growth during the final quarter of last year, the fastest pace in three years.