US Production and Manufacturing Drop to Record Levels Not Seen Since 1946

The Federal Reserve released new figures regarding industrial production in the US, and the numbers are grim: the US economy has not suffered such a production decline since the Second World War.

As a result of the global pandemic, US manufacturing output, which is the secondary state in an economy, fell by an overall 6.3% in March. Industrial production, which encompasses all sorts of goods and services such as utilities, mines, and factories decreased by a total of 5.4%. Broken down, utilities decreased by 3.9%, mines by 2%, and factories such as auto production fell by 27.2%. Figures have declined to such historic levels, that such an event has not been witnessed since 1946 – even economists did not anticipate such a drop given the coronavirus havoc.

Given the startling figures however, economists are readjusting their predictions, stating that the worst is yet to come. According to Pantheon Macroeconomics chief economist Ian Shepherdson, April will most likely see figures with an even larger decline than those in March, given that the nation-wide lockdowns weren’t implemented until the middle of March.

Subsequently, the Dow Jones Industrial Average followed suit, and dropped by 529 points to meet the current industrial production levels.

Information for this briefing was found via Bloomberg and MarketWatch. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

2 Responses

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Trump Tariffs Hurt Nearly 80% of US Manufacturers

Nearly 80% of US manufacturers report increased costs from President Donald Trump’s tariffs, with more...

Monday, June 16, 2025, 02:21:00 PM

US Business Activity Slumps to 8-Month Low Amid Worsening Material, Labour Shortages

Business activity across the US continues to decline, as an increasing number of businesses and...

Monday, August 23, 2021, 04:15:09 PM

America’s Manufacturing Revival Faces Reality Check: Workers Don’t Really Want Factory Jobs

President Donald Trump has made revitalizing American manufacturing a cornerstone of his economic agenda, promising...

Tuesday, April 15, 2025, 10:33:00 AM

US Trade War With China Failed to Reduce Trade Deficit, Boost Manufacturing

America’s trade war with China has garnished a considerable amount of attention over the past...

Wednesday, October 28, 2020, 10:21:00 AM

US Manufacturing Orders Drop by Record Amount Amid Coronavirus Pandemic

The coronavirus has caused significant disruptions across the US, shattering vital supply chains and reducing...

Tuesday, May 5, 2020, 06:03:00 PM