Please ensure Javascript is enabled for purposes of website accessibility
Factory Shutdowns Near WWII Demobilization Levels in US
gvw_ap_news
By Associated Press
Published 5 years ago on
April 15, 2020

Share

WASHINGTON — American industry collapsed in March as the pandemic wreaked havoc on the U.S. economy. Manufacturing and overall industrial production posted the biggest declines since the United States demobilized after World War II.

The lockdowns and travel restrictions imposed to combat COVID-19 have brought economic activity to a near-standstill. Output dropped 3.9% at utilities and 2% at mines as oil and gas drilling plunged, the Fed said.

The Federal Reserve reported Wednesday that manufacturing output dropped 6.3% last month, led by plunging production at auto factories that have entirely shut down. Overall, industrial production, which includes factories, utilities and mines, plummeted 5.4%. The declines were the biggest since 1946 and far worse than what economists had expected.

Production of autos and auto parts went into freefall, dropping 28%.

The lockdowns and travel restrictions imposed to combat COVID-19 have brought economic activity to a near-standstill. Output dropped 3.9% at utilities and 2% at mines as oil and gas drilling plunged, the Fed said.

[covid-19-tracker]

The Outlook Is Bleak for the Industrial Sectors

Factories were running at 70.2% of capacity last month, down from 75.1% in February and lowest since 2010 when the U.S. economy was still recovering from the 2007-2009 Great Recession.

“The outlook is bleak for the industrial sectors,” James Watson and Gregory Daco at Oxford Economics wrote in a research note. “With the global coronavirus recession leading to a sudden stop in activity at home and around the world, factory output is likely to fall even further in April. Major supply chain disruptions, reduced energy activity and tighter financial conditions will continue to represent major headwinds in the coming months.” They say industrial production could drop 15% overall.

In another sign that industry is in a full-scale retreat, the Federal Reserve Bank of New York’s index for manufacturing in New York state plummeted an unprecedented 57 points this month to -78.2, lowest lowest level in records dating back to 2001.

DON'T MISS

Trump Administration Directs All Federal Diversity, Equity and Inclusion Staff Be Put on Leave

DON'T MISS

Baseball’s Newest Hall of Famers: Suzuki, Sabathia, Wagner

DON'T MISS

‘Once in a Lifetime’ Snow Hits Parts of the US South

DON'T MISS

Trump Temporarily Halts Leasing and Permitting for Wind Energy Projects

DON'T MISS

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

DON'T MISS

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

DON'T MISS

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

DON'T MISS

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

DON'T MISS

Convicted Jan. 6 Rioter Benjamin Martin Still Going to Prison

DON'T MISS

Is Lawsuit on Planned Reedley Job Center a ‘Shakedown’?

UP NEXT

Musk’s Straight-Arm Gesture Embraced by Right-Wing Extremists

UP NEXT

Trump’s Executive Orders: Reversing Biden’s Policies

UP NEXT

Trump Returns to Power After Unprecedented Comeback, Emboldened to Reshape US

UP NEXT

Trump to Release Records on the Assassinations of the Kennedys and Martin Luther King

UP NEXT

Walmart Breaks into Luxury Resale Market, Will Offer Chanel, Fendi, Prada, Other Brands

UP NEXT

The Big Chill: Siberian Air to Make Trump Swearing-in Coldest in 40 Years

UP NEXT

Proposed Rules Would Require Nutrition Info, Allergen Warnings on Alcohol Labels

UP NEXT

South African Police End Mine Rescue Operation With at Least 78 Dead and 246 Survivors

UP NEXT

Google Signs Deal With AP to Deliver Up-to-Date News Through Its Gemini AI Chatbot

UP NEXT

Jeffrey Epstein’s Estate Got a $112 Million Tax Refund

Trump Temporarily Halts Leasing and Permitting for Wind Energy Projects

14 hours ago

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

14 hours ago

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

14 hours ago

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

14 hours ago

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

14 hours ago

Convicted Jan. 6 Rioter Benjamin Martin Still Going to Prison

15 hours ago

Is Lawsuit on Planned Reedley Job Center a ‘Shakedown’?

15 hours ago

Much of the Damage from the LA Fires Could Have Been Averted

17 hours ago

CA Sued the Tar Out of Trump the First Time Around. How Did It Do?

17 hours ago

Israel’s Top General Resigns over Oct. 7 Failures, Adding to Pressure on Netanyahu

18 hours ago

Trump Administration Directs All Federal Diversity, Equity and Inclusion Staff Be Put on Leave

WASHINGTON — President Donald Trump’s administration is directing that all federal diversity, equity and inclusion staff be put on pai...

11 hours ago

President Donald Trump signs an executive order as he attends an indoor Presidential Inauguration parade event at Capital One Arena, Monday, Jan. 20, 2025, in Washington. (AP/Evan Vucci)
11 hours ago

Trump Administration Directs All Federal Diversity, Equity and Inclusion Staff Be Put on Leave

Ichiro Suzuki in Yankee Pinstripes
13 hours ago

Baseball’s Newest Hall of Famers: Suzuki, Sabathia, Wagner

People walk past the 1900 Storm memorial sculpture on Seawall Blvd. during an icy winter storm on Tuesday, Jan. 21, 2025 in Galveston, Texas. (Brett Coomer/Houston Chronicle via AP)
13 hours ago

‘Once in a Lifetime’ Snow Hits Parts of the US South

The five turbines of Block Island Wind Farm operate, Dec. 7, 2023, off the coast of Block Island, R.I., during a tour organized by Orsted. (AP File)
14 hours ago

Trump Temporarily Halts Leasing and Permitting for Wind Energy Projects

Photo of Mexican Oxy, fentanyl laced blue pills
14 hours ago

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

President Donald Trump talks about the Endurance all-electric pickup truck, made in Lordstown, Ohio, at the White House, Sept. 28, 2020, in Washington. (AP File)
14 hours ago

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

A Border Patrol truck rides along the border wall in Sunland Park, N.M., Tuesday, Jan. 21, 2025. (AP/Andres Leighton)
14 hours ago

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

Police are investigating after a man was found shot near a Visalia shopping center and transported to Kaweah Health.
14 hours ago

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

Help continue the work that gets you the news that matters most.

Search

Send this to a friend