Industrial Output Down 1.4%

Industrial production fell in February for the fourth consecutive month, Bloomberg News reports. Output at factories, mines and utilities dropped 1.4% last month, more than forecast, after a revised 1.9% decline in January, the Federal Reserve said. The amount of factory capacity in use slumped to 70.9%, matching the lowest level on record.

The proportion of plants in operation matched the December 1982 reading as the lowest since data began in 1967. Economists had forecast that figure would fall to 71%, according to a separate Bloomberg survey. Factory output, which accounts for about four-fifths of industrial production, decreased 0.7%, led by declines in furniture, appliances, machinery and computers.

Economists surveyed by Bloomberg say the economy may shrink at a 5.2% pace in the current quarter after a 6.2% contraction in the previous three months that was the worst since 1982.