Industrial Production Falls in March on Demand Concerns

U.S. factories, mines and utilities produced less in March, the Federal Reserve said Tuesday, as concerns about the war helped drive fears of sinking demand.

The 0.5% decline in industrial production was the second in as many months, the Fed reported. Production slipped a revised 0.1% in February, the report said.

During the month, capacity usage fell to 74.8% from 75.3% in February, the lowest utilization figure in 15 months, the Fed said.

Analysts told Bloomberg that a slowdown in consumer spending caused manufacturers to retrench and that was one of the major reasons for the pullback in production figures.

The Fed said that factory production, which accounts for 90% of industrial production fell 0.2% in March.

Utility production was pushed lower by higher than normal average. During March, utility production fell 4.1% after a 1.3% increase in February.