The cost of goods leaving US factories fell at the fastest rate on record last month as crude oil prices declined after the war in Iraq. Producer prices fell a record 1.9pc in April from March and were up 2.4pc on a year-on-year basis, the Labour Department said. The core rate, which excludes volatile food and energy prices, declined 0.9pc on the month and 0.2pc from a year earlier. Energy prices fell 8.6pc in April, after rising 5.7pc in March, marking the biggest monthly drop in energy costs since July 1986. The decline was led by falling home heating oil and liquefied petroleum gas prices.
Meanwhile, industrial output in the US fell unexpectedly in April from the previous month, falling 0.5pc, the Federal Reserve said. Analysts had expected output to increase by 0.4pc. The decline was the sixth in nine months, reflecting a reluctance among manufacturers to increase production amid weaker demand for their goods. US retail sales fell unexpectedly last month, according to figures released yesterday. The Fed also said that US industry operated at 74.4pc of capacity in February, the lowest level in 20 years. ///www.fxcentre.com