American industry collapsed in March as the pandemic wreaked havoc on
the U.S. economy. Manufacturing and overall industrial production posted
the biggest declines since the United States demobilized after World
War II. The Federal Reserve reported Wednesday that manufacturing output
dropped 6.3% last month, led by plunging production at auto factories
that have entirely shut down. Overall, industrial production, which
includes factories, utilities and mines, plummeted 5.4%. The declines
were the biggest since 1946 and far worse than what economists had
expected.
Production of autos and auto parts went into freefall, dropping 28%. The
lockdowns and travel restrictions imposed to combat COVID-19 have
brought economic activity to a near-standstill. Output dropped 3.9% at
utilities and 2% at mines as oil and gas drilling plunged, the Fed said.
Factories were running at 70.2% of capacity last month, down from 75.1%
in February and lowest since 2010 when the U.S. economy was still
recovering from the 2007-2009 Great Recession.
-Full Report
