U.S. industrial production fell for the fifth consecutive month in March to a 10-year low, the government reported Wednesday, as companies reduced output so they could clear inventories of goods. The Federal Reserve (Fed) said production at the country's factories, mines, and utilities fell 1.5 percent last month, matching February's decline and steeper than the 1 percent drop expected by analysts. U.S. factories and mines are increasingly idle, as the total industrial capacity utilization rate fell to 69.3 percent from 70.3 percent, the lowest on records dating back to 1967. Industrial production fell at a 20 percent annual rate in the first quarter, the Fed said. It was the sharpest quarterly decline of the current recession, and it will contribute to another steep contraction in the overall economy in the January-March quarter that economists believe will be between 4 and 5 percent. The U.S. economy shrank at a 6.3 percent annual rate in the fourth quarter of 2008. Manufacturing output fell 1.7 percent last month, the Fed reported, and has fallen for five consecutive quarters. The factory utilization rate fell to 65.8 percent, the lowest on records dating to 1948. Auto industry production rose 1.5 percent in March, the second consecutive increase after a sharp drop in January. Despite the improvement, U.S. auto sales are down sharply from a year ago. Natural-gas and electric utilities increased output 1.8 percent in March after warmer-than-usual weather caused a steep 7.7 percent plunge in February.
