Strong dollar, cheap oil put brake on factory output in April

Washington

FACTORY production stalled in April, as American manufacturers were dealt blows by a strong dollar and cheap oil.

The unchanged reading in manufacturing followed a 0.3 per cent March gain that was larger than previously estimated, a Federal Reserve report showed on Friday in Washington. The median forecast in a Bloomberg survey of 21 economists called for a 0.2 per cent increase. Total industrial production declined for a fifth consecutive month amid mining and utilities cutbacks.

Soft export demand, caused by a stronger dollar and weaker global markets, continued to diminish US manufacturing activity in April, while oil companies curtailed operations to cope with low fuel prices. The effects of temporary setbacks in the first quarter, including bad weather and a West Coast port shutdown, will probably fade, signalling the industry could make some progress in coming m…