Industrial Production Falls 0.5% in April

Industrial production fell 0.5% in April, the largest drop in eight months, the Federal Reserve said Wednesday.

The overall decline in output at factories, mines and utilities followed a 0.3% increase in March that was lower than originally reported.

The drop was larger than economists’ median forecast of a 0.2% decline, Bloomberg News reported.

Manufacturing output, which makes up about three-quarters of the total, fell 0.4%, the third decline in four months.

Utility output declined 3.7% following a 6.4% jump the prior month that was the largest in six years, Bloomberg said.

Motor vehicle and parts production fell 1.3%, following a 2.3% increase the prior month.

Capacity utilization, which measures plant output, decreased to 77.8% from 78.3% in March, the Fed said.

Manufacturing accounts for about 12% of the U.S. economy. The factory sector is one of trucking’s largest and most important customers.