June 16, 2012 (TSR) – Industrial production unexpectedly fell and consumer confidence declined, adding to evidence of US economic weakness just before Federal Reserve policy makers meet to decide whether more stimulus is needed.
Output at factories, mines and utilities decreased 0.1% last month after a revised 1% gain in April, the Fed reported Froday in Washington. The Thomson Reuters/University of Michigan index of consumer sentiment for June fell to 74.1, the lowest level this year, down from 79.3 last month.
Stocks rose for a 2nd day on speculation the US Fed will join central banks in taking steps to boost growth as Europe’s deepening debt crisis threatens the global economy.
Shock wave headlines from Europe are roiling US markets, denting business and consumer confidence and cutting demand for American goods.
The Standard & Poor’s 500 Index advanced 0.6% to 1,337.17 at 11:45 a.m. in New York.
US Treasuries rose, pushing the yield on the 10-yr T-Note down to 1.58% from 1.64% Thursday.
Monetary policy makers from the UK to Japan and Canada this week sounded the alarms about potential fallout from the Eurozone’s troubles.