Industrial production in the U.S. slipped in March but was higher for the first quarter overall, according to the latest report on production and industrial capacity from the Federal Reserve.
Industrial production dropped 0.5% from February’s index but was up at an annual rate of 2.4% for the quarter; production was 0.7% above the level from March of 2025.
The report also showed a drop of 0.1% in manufacturing output from February to March but a 3% increase across the quarter. Durable goods production was down 0.2% amid declines in motor vehicles and parts, primary metals and machinery. Nondurable goods production was down 0.1% with declines in every category except petroleum and coal products, plastics and rubber, and paper.
Capacity utilization fell to 75.7%, which was 3.7 percentage points below the Fed’s long-run average.
