US Factory Production Declines on Weaker Equipment Demand

  • Manufacturing output fell by 0.5% in March, below forecasts
  • Drop driven by a pullback in durable goods, like wood products

An American flag hangs at a factory in Fort Worth, Texas. 

Photographer: Luke Sharrett/Bloomberg
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Production at US factories fell in March for the first time this year as companies show signs of ratcheting back investment plans.

The 0.5% drop in output last month followed an upwardly revised 0.6% increase in February, according to Federal Reserve data released Friday. Including mining and utilities, total industrial production climbed 0.4% in March.