Industrial production fell more than expected last month, adding to concerns about first quarter GDP. Bobbi Rebell reports.
The latest data on the U.S. economy is not good- but there are signs the downward trend may not last. Industrial production fell more than expected in March. Manufacturing output declined by the most in a year, and mining maintained its downward trend. What's more, the University of Michigan consumer sentiment survey showed further erosion at the consumer level. Moody's Capital Markets Research' Chief Economist John Lonski: (SOUNDBITE) JOHN LONSKI, CHIEF ECONOMIST, MOODY'S CAPITAL MARKETS RESEARCH (ENGLISH) SAYING: "I think we should be more concerned than we have been of late. We shouldn't be complacent. When we look at this decline by consumer sentiment, two things come to mind. Salary increases perhaps are lagging expectaions and secondly perhaps there is a quiet hidden increase in layoffs that the government data has yet to detect." And recent data on retail sales, business spending, trade and wholesale inventories have also indicated slowing growth. This is increasing concerns about growth in first quarter GDP. But another report out Friday from the New York Federal Reserve showed factory activity in New York state accelerated in April to its highest level in more than a year. It was driven by new orders and increased shipments.