Economics

Factory Production in U.S. Unexpectedly Declines on Weather

  • Manufacturing output fell 3.1%, worse than all estimates
  • Utility output surges 7.4%, most in nearly four years
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Production at U.S. manufacturers unexpectedly declined in February, representing a pause in recent momentum as factories were beset by severe winter weather and supply-chain challenges.

The 3.1% decrease in output was the first since April and followed an upwardly revised 1.2% gain in January, according to Federal Reserve data Tuesday. That was worse than all estimates in a Bloomberg survey of economists. The median forecast called for a 0.2% rise.