U.S. industrial output collapses in April

Industrial production collapsed in April, the Federal Reserve said Friday. Industrial output fell a record 11.2%, pulled down by a record drop in manufacturing.

Capacity utilization slumped to a record low 64.9% from 72.7% in March.

Economists polled by MarketWatch expected a 12% decline in production and capacity utilization of 63.2%.

What happened: There were declines across the board in April.

Manufacturing production a record 13.7 in April, led by a 70% reduction in production of motor vehicles and parts. Excluding autos, manufacturing output was down 10.3%.

Mining output dropped 6.1% and utility production slipped 0.9%.

Big picture: The decline reflects factory closures, declining oil output and less power consumption, said Sal Guatieri, senior economist at BMO Capital Markets. The COVID-19 pandemic led many factories to slow or suspend operations.