Fed: Industrial Production Falls

By Staff Writer April 16, 2020 560

Total industrial production fell 5.4 percent in March, as the COVID-19 pandemic led many factories to suspend operations late in the month.

Manufacturing output fell 6.3 percent; most major industries posted decreases, with the largest decline registered by motor vehicles and parts. Total industrial production for manufacturing saw its largest declines since January 1946 and February 1946, respectively. The indexes for utilities and mining declined 3.9 percent and 2.0 percent, respectively. At 103.7 percent of its 2012 average, the level of total industrial production in March was 5.5 percent lower than a year earlier. Capacity utilization for the industrial sector decreased 4.3 percentage points to 72.7 percent in March, a rate that is 7.1 percentage points below its long-run (1972–2019) average.

The weakness in consumer durables was led by a drop of 27.2 percent in automotive products, while the decline for consumer energy products reflected decreases in both fuels and utilities. The production of business equipment decreased 8.6 percent, held down by a drop of 22.8 percent in transit equipment that reflected cutbacks in the output of both motor vehicles and civilian aircraft.

Manufacturing output dropped 6.3 percent in March and at an annual rate of 7.1 percent in the first quarter. In March, the index for durable manufacturing fell 9.1 percent; the most sizable decline among its components was in motor vehicles and parts, where output fell 28.0 percent.

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Last modified on Wednesday, 22 April 2020 14:18