U.S. industrial output stalled in April after contracting a month earlier, the Federal Reserve said Thursday, with a decline in manufacturing counteracted by growth in electricity and gas production.
The data covers the period of time when U.S. President Donald Trump imposed his sweeping "liberation day" tariffs, which have lifted levies substantially above their historical average for most countries.
U.S. industrial production was "little changed" last month, after contracting 0.3% in March, the Fed said in a statement.
This was below market expectations of a 0.3% rise, according to Briefing.com.
Although the top-line figure was flat, there was plenty happening beneath the surface, with the Fed noting that "declines in manufacturing and mining output were offset by growth in utilities output."
The indexes for manufacturing and mining contracted 0.4% and 0.3% respectively, while the utilities index rose 3.3% -- fueled by an increase in both electricity and natural gas production.
It is worth noting, however, that the monthly rise in utilities production follows a sharp contraction in the index a month earlier, as warmer weather reduced the demand for energy.
There was also a marked 1% decline in construction last month, according to the Fed.
Analysts have warned that Trump's tariffs will likely cause an increase in input costs for construction, while the uncertainty kicked up by the stop-start nature of the rollout could also have played a role.
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