Economic Buzz: US industrial production declines 0.3% in March

Reflecting a steep drop by utilities output, the Federal Reserve released a report on Wednesday showing U.S. industrial production decreased by slightly more than expected in the month of March.

The Fed said industrial production fell by 0.3 percent in March after climbing by an upwardly revised 0.8 percent in February.

The modest pullback by industrial production came as utilities output plunged by 5.8 percent in March after slumping by 1.5 percent in February, as temperatures were warmer than is typical for the month.

Meanwhile, the report said mining output grew by 0.6 percent in March after surging by 1.7 percent in February, while manufacturing output rose by 0.3 percent in March after jumping by 1.0 percent in February.

The Fed also said capacity utilization in the industrial sector fell to 77.8 percent in March from 78.2 in February.

Capacity utilization in the mining and manufacturing sectors increased to 90.6 percent and 77.3 percent, respectively, while capacity utilization in the utilities sector tumbled to 69.1 percent.

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