U.S. manufacturing reports lowest output since WWII

Output in the U.S. manufacturing industry dropped by 6.3% in March, the largest decline since 1946, following the outbreak of the COVID-19 pandemic. The Federal Reserve reported that industrial production as a whole, which includes factories, utilities, and mines, fell by 5.4%. Economists had not predicted such a steep decline in figures, which has been largely down to the entire shut-downs of numerous automotive factories - with production of automotives and parts dropping by a significant 28%. The manufacturing industry was already struggling, with the repercussions of the trade war between the U.S. and China still being felt long before COVID-19 reached the country. The industry, which accounts for 11% of the United States’ economy, also saw business investment contract for the third consecutive quarter - the longest period of contraction since the Great Recession.