Shares of industrial and transportation companies fell after weak economic data.
Industrial production, a measure of factory, mine and utility output, decreased 0.7% in December, an indication that factory activity may be slowing to recessionary levels.
The producer-price index, which generally reflects supply conditions in the economy, rose 6.2% in December from a year earlier, the Labor Department said Wednesday, the slowest annual pace since March 2021.
Fears about slowing growth eclipsed optimism about the increasingly evident peak in inflation.
U.S. economic activity was relatively flat at the start of the year and businesses are pessimistic about growth in the months ahead, according to the latest regional "Beige Book" survey from the Fed.
"We know there's going to be a growth slowdown; we need there to be a growth slowdown; you cannot tame inflation without slowing down growth," said Oliver Pursche, senior vice president at financial advisory Wealthspire.
Trucking and logistics giant J.B. Hunt Transport Services forecast a recovery in freight demand as pandemic-driven hitches in supply chains fade and companies return to more conventional ordering cycles.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-18-23 1702ET
