Newsflow car show5/1/2023 "In one line: Unbelievable," Shepherdson at Pantheon Macroeconomics said. The results were well below economist expectations for a 0.1% increase. The Commerce Department said Thursday that retail sales sank 1.2% to $505.8 billion, marking the biggest drop since 2009, as receipts fell in nearly every major category. Retail sales plummeted by the most in nine years in December. The large drop in the output of motor vehicles and parts contributed significantly to sizable decreases posted by consumer durable goods, transit equipment, and durable materials, the Fed said. Manufacturing is under real pressure from the slowdown in China and the trade war, and we expect output to drift down over the first half of the year, putting the sector into a mild recession, said Ian Shepherdson, the chief economist at Pantheon Macroeconomics. "The large drop in the output of motor vehicles and parts contributed significantly to sizable decreases posted by consumer durable goods, transit equipment, and durable materials," the Fed said.Īmerican manufacturing is in danger of entering a recession this year Motor vehicle assemblies fell from 12.3 million units at an annual rate in December to 10.6 million units in January, their lowest reading in nearly a year. "Manufacturing is under real pressure from the slowdown in China and the trade war, and we expect output to drift down over the first half of the year, putting the sector into a mild recession," said Ian Shepherdson, the chief economist at Pantheon Macroeconomics.Ī steep fall in auto production helped pull the sector lower, with the index falling 8.8% from a two-year high a month earlier. Manufacturing production slid 0.9%, seen as the result of rising protectionism and decelerating economic growth around the world. Industrial production declined 0.6% in January from a month earlier, the Federal Reserve said in a report Friday, well below expectations for a 0.1% increase.
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