US manufacturing production shrinks on weaker car sector

US factory production unexpectedly contracted in January, shrinking the most in eight months on weakness in the automotive sector.

This indicated a weak start to the year as headwinds, including a trade war with China, weighed on factories.

Manufacturing output fell 0.9% after a downwardly revised 0.8% increase in the prior month, Federal Reserve data showed on Friday. The results differed from the Bloomberg survey median forecast, which had called an unchanged reading.

Total industrial production, which also includes mines and utilities, contracted 0.6% after a revised 0.1% rise that was also revised down.

Bloomberg