U.S. factory production slumped for a second month in February, missing forecasts for a pickup, indicating headwinds from the trade war to slower global growth are weighing on manufacturers. Still, the prior month's drop was revised up.
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Manufacturing output fell 0.4% after a revised 0.5% decline in the prior month, Federal Reserve data showed Friday. The results missed the estimate for a 0.1% rise in a Bloomberg survey. Total industrial production, which also includes mines and utilities, rose 0.1% after a revised 0.4% decrease that was also upwardly revised.
The results indicate headwinds for manufacturing persist as producers confront uncertainty from trade policy and dimmer projections for major economies from China to Europe. Economists project the U.S. economy will slow in each quarter this year. The data echo other downbeat reports on the sector.
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Capacity utilization, measuring the amount of a plant that is in use, edged down to 78.2% from 78.3%. Utility output rose 3.7% after declining 0.9% the prior month. Mining production rose 0.3% for the second straight month.
Machinery production slipped 1.9%, while output of consumer goods was down 0.1%, and business-equipment production fell 1%. The Fed's monthly data are volatile and often revised. Manufacturing, which makes up about 75% of total industrial production, accounts for about 12% of the U.S. economy.