Alarming data from the USA. Industry at a rack
New data on industrial production in the US surprised economists – instead of forecast growth, zero dynamics was noted.
Data on industrial production published by American institutions in April 2025 did not meet market expectations. Industrial production, corrected with inflation, remained at 0.0 %, which means no increase in monthly terms. Meanwhile, economists assumed that at least a slight increase in this indicator would occur.
A surprising result
Although the result is not consistent with the predictions, it can be considered a certain improvement compared to March, when the industrial sector recorded a decrease in production by a 0.3 percent. This reading testified to the further weakening of the economic situation in the industry, which is struggling with many challenges – from logistics difficulties, through staff shortages, to macroeconomic factors.
Industrial production is one of the key indicators of the state of the economy. This index includes the activity of factories, mines and public utilities. Its changes can affect the dollar exchange rate – positive readings usually strengthen the American currency, and disappointing data can weaken it.
The current result – although lower than forecasts – may be a signal of the end of the inheritance trend. Lack of growth on the one hand disappoints, but on the other – it may indicate stabilization. However, it is still difficult to talk about the permanent reflection of the production sector, which can affect the mood of investors and further economic forecasts.
Markets react
The market reaction can be seen on the example of stock indexes. Dow Jones lost 0.37 percent, and the S&P 500 decreased by 0.33 percent. This may be the effect of fears related to the lack of revival in the industrial sector. The situation is also complicated by the political context – former President Donald Trump suggests the possibility of increasing duties, and the management of Walmart does not exclude the increase in prices of goods because of this.
Future readings of industrial indicators will be crucial for further assessments of the US economy. Maintaining a stabilization trend or a return to growth can affect investment decisions and monetary policy.
