Factory output fell 0.6% in April after declining 0.1% in each of the two previous months, according to the Federal Reserve Board.

April production was 0.7% below last April. The monthly report from the Federal Reserve Board reflects production schedules set after confidence plunged and spending stalled at the onset of the Iraq war. And some of the weakness may carry into May.
Then a rising trend is likely -- at least through 2004, said Jim Haughey, Newport Communications’ senior economist. "Already confidence has recovered, spending has quickened and the dollar has resumed falling, which will spur exports and restrain imports."
Only electronics output rose in April, with computer and semiconductor production both up about 2%. "This was enough so that there was a small volume gain after the monthly adjustment to the production index for added functions, faster speeds or denser memories in semiconductor parts," Haughey said.
The production index overstates the recent weakness in freight generating activity. April retail sales have already been reported to be steady after a large rise in March.