Wall Street Journal (03/27/15) Kate Davidson; Ben Leubsdorf

The U.S. economy retreated toward the end of 2014 ahead of a contraction early this year. Gross domestic product rose at a seasonally adjusted annual rate of 2.2% in the fourth quarter, according to the U.S. Department of Commerce, a rate that was unchanged from the previous estimate last month. Economists polled by the Wall Street Journal had expected an upwardly revised figure of 2.4% growth. Economic output in the fourth quarter climbed 2.4% from a year ago, retreating from 2.7% annual growth in the third quarter.

Although consumer spending in the last quarter was the most robust since 2006, business investment and government outlays fell. And many economists cut their first-quarter GDP estimates earlier this week after a disappointing report on business spending and investment. Still, the economy has been performing well enough to add jobs at a strong pace.

Federal Reserve Bank of Kansas City (03/26/15)

Manufacturing activity in the Plains states declined in March, and producers’ expectations moderated somewhat but remained slightly positive, according to the Federal Reserve Bank of Kansas City. Most price indexes continued to decrease, with several reaching their lowest level since 2009. In a special question about the West Coast port disruptions, 32% of firms said it had affected them negatively.

The month-to-month composite index was -4 in March, down from 1 in February. The production and shipments indexes fell after rising last month, and the new orders and order backlog indexes dropped to their lowest levels in more than two years. In contrast, the employment index inched higher but remained negative, while the future employment index dropped from 14 to 7, its lowest level in over a year.