Industrial Production Falls in March

Washington, DC, April 15, 2009--U.S. industrial production fell a fifth straight month in March, forced down by a broad-based decline in manufacturing and lower oil and gas well drilling.

Industrial production fell 1.5% in March compared to the prior month, the Federal Reserve said Wednesday. Output decreased an unrevised 1.5% in February. At a level of 97.4, production was at its lowest since December 1998.

Capacity utilization receded in March to 69.3%, a historical low since records began in 1967.

Over the 12 months ending in March, industrial production was down 12.8%.

Inventory liquidation by U.S. companies could lead to further production cuts. Businesses reduced inventories by 1.3% in February, the Commerce Department reported Tuesday.

March manufacturing production dropped by 1.7%, after falling 0.6% in February and 2.7% during January. Manufacturing capacity utilization slid to 65.8% from 66.9%.

Business equipment fell 2.3%. Construction supplies were down 2.8%.

Excluding motor vehicles and parts, industrial production would have decreased 1.6% in March. Production ex-auto in February fell 1.8%.