Industrial Production Posts Largest Decline Since 1946 Due to COVID-19 Mitigation

As With Industrial Production, Manufacturing Output Posts Biggest Decline Since 1946

Washington, D.C. (PPD) — The Federal Reserve Bank reported total industrial production fell 5.4% in March as the coronavirus (COVID-19) led many factories to suspend operations. That’s the largest monthly decline since January 1946.

Forecasts ranged from a low of -5.5% to a high of only -2.0%. The consensus forecast was -4.2%.

Manufacturing output fell 6.3% in March. That’s the largest monthly decline since February 1946. The largest decline came from motor vehicles and parts.

Forecasts for manufacturing output ranged from a low of -7.0% to a high of only -2.5%. The consensus forecast was -4.0%.

The indexes for utilities and mining declined 3.9% and 2.0%, respectively.

At 103.7% of its 2012 average, the level of total industrial production in March was 5.5% lower than a year earlier. Capacity utilization for the industrial sector fell 4.3 percentage points to 72.7% in March, a rate that is 7.1 percentage points below its long-run (1972–2019) average.

Forecasts for the capacity utilization rate ranged from a low of 69.8% to a high of only 75.3%. The consensus forecast was 74.0%.

Earlier Wednesday, the New York Federal Reserve reported the Empire State Manufacturing Survey showed factory activity in New York plunged to its lowest level ever in April.