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Thursday, July 18, 2024
HomeNewsEconomyIndustrial Production Posted Largest Monthly Drop Ever in April

Industrial Production Posted Largest Monthly Drop Ever in April

Industry production 4.0 and technology concept, depicting factory production on a conveyor belt with factory operational workers in uniform. (Photo: AdobeStock)

Total Industrial Production, Manufacturing, Both Post Largest in 101-Year History of Index

Washington, D.C. (PPD) — The Federal Reserve reported industrial production fell 11.2% in April, the largest monthly drop in the 101-year history of the index. It was the direct result of factories slowing or suspending operations to mitigate the spread of the Chinese Coronavirus (COVID-19) throughout the month.

Forecasts for industrial production ranged from a low of -15.0 to a high of -6.2. The consensus forecast was -11.5.

Manufacturing output dropped 13.7%, also the largest decline on record. All major industries posted declines. The output of motor vehicles and parts declined more than 70%, and remaining production in manufacturing fell 10.3%.

Forecasts for manufacturing ranged from a low of -20.0 to a high of -5.0. The consensus forecast was -11.4. The indexes for utilities and mining fell 0.9% and 6.1%, respectively.

At 92.6% of its 2012 average, the level of total industrial production was 15.0% lower in April than it was a year earlier.

Capacity utilization for the industrial sector decreased 8.3% to 64.9% in April, a rate that is 14.9% below its long-run (1972–2019) average and 1.8 percentage points below its all-time (since 1967) low set in 2009.

Forecasts for the Capacity Utilization Rate ranged from a low of 60.0 to a high of 75.7. The consensus forecast was 64.9.

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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