The Federal Reserve has released gloomy statistics. It became known that in March the volume of national industrial production had fallen 5.4% compared with February. The United States has not seen a similar rate of decline since the end of World War II. The figures are worse than the most pessimistic analysts’ forecasts. We recall they believed that the decline would not cross the 4% mark.
In the processing industry, the production has fallen 6.3% (a record since the winter of 1946!). The reason is obvious – the enterprises have stopped working due to the spread of coronavirus, the staff was forced to stay at home. By the way, here the forecasts were mistaken; analysts believed that the decrease would be 3.2%.
The auto industry has suffered greatly – the production of parts and cars have decreased by 28%. Electricity production and the mining industry has been least affected of other industries. The drop has amounted to 3.9% and 2% respectively.
In February, there was recorded a decrease in the use of production capacities by 77%; in March the figures were slightly more optimistic – the decrease amounted to 72.7%.
If we compare the current indicators not with February 2020, but with the same period last year, the figures look like this:
- reduction in industrial production is 5.5%;
- a production decrease in the processing sector has amounted to 6.6%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group