The US Dollar remains little changed against the Euro but has weakened against Sterling after industrial production data out of the USA showed that production declined by its biggest margin in eight months.
Output from factories, utilities and mines fell more than expected to -0.5%. Economists had been expecting a decline of -0.3%. The data reflects the broad cutbacks being implemented in the US as a result of the sequestration cut backs; it also reinforced the belief that the industrial sector will provide little support for the economy. Adding to today’s disappointing data, manufacturing, which makes up 75% of total production, unexpectedly fell 0.4%, the third drop in four months.
“Manufacturing activity could be fairly tepid over the next few months,” Millan Mulraine an economist for TD Securities USA LLC in New York, said before the report. “We could see a downward adjustment to output. Companies are limiting orders. Overall demand has weakened relative to the first quarter.”
Output decreased across most major categories, including a big 1.3% fall for motor vehicles and parts. In one positive sign, computer and electronics production rose. The index for utilities decreased 3.7% in April as demand for heating fell back to a more normal level. And mining output, a volatile component of overall industrial production, increased 0.9% during April. Output by the service sector, which makes up most of the U.S. economy, isn’t reflected in the industrial production data.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6562
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7774
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0100
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 102.2293
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0187
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5237
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2862
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9900
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9816
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8236
(Correct as of 14:55pm GMT)
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