US factory output slipped for the first time in 10 months in April as a shortage of parts from Japan squeezed activity while home building slumped, showing the economy got off to a weak start in the second quarter.

Manufacturing output fell 0.4 per cent, breaking nine straight months of gains, as supply disruptions from Japan’s earthquake hit car production, the Federal Reserve said.

A Commerce Department report showed ground-breaking for new housing dropped 10.6 per cent to an annual rate of 523,000 units as a glut of homes on the market discouraged new projects. – (Reuters)