Industrial production in the U.S. declined 0.6% in March, according to preliminary data published by the Federal Reserve Board. A substantial portion of the overall decrease in March resulted from declines in the indexes for mining and utilities, which fell 2.9% and 1.2%, respectively; in addition, manufacturing output fell 0.3%. The February IP reading was revised lower to -0.6% from -0.5%.
Additionally, the Fed said capacity utilization in the industrial sector fell to 74.8 percent in March from a revised 75.3 percent in February. This was below expectations.
The Fed said the sharp decrease in mining production continued the industry’s recent downward trajectory, with output falling for the seventh straight month.
The index for utilities, including electricity and heating, fell for a second month in a row, by 1.2 percent, and was down 7.7 percent from a year ago.
For the first quarter as a whole, industrial production fell at an annual rate of 2.2%. Manufacturing output had been expected to inch up by 0.1 percent.
The manufacturing sector has been hammered since last summer by weak growth overseas, the strong dollar, and the collapse of oil prices.
