GDP fell 0.1% M/M in April, weaker than estimates for a flat reading as a 0.6% decline in goods producing industries more than offset a 0.1% gain in services.

The manufacturing sector was the primary cause of the slowdown…

… as what’s been a multi-year downtrend has intensified following the implementation of tariffs, with motor vehicle manufacturing falling 5% versus March.

The slowdown has flowed through to wholesale sales which posted the steepest monthly drop in two years, led by a 7% decline in motor vehicles and parts…

… which looks set to continue in the near-term, with preliminary estimates for May suggesting a second 0.1% drop in GDP.