Breaking: US Industrial Production contracts by 5.4% in March

Industrial Production in the US contracted by 5.4% on a monthly basis in March, the data published by the Federal Reserve showed on Wednesday. This reading came in worse than the market expectation for a decline of 4%.

Further details of the press release revealed that Capacity Utilization in the same period fell to 72.7% from 77%.

"Manufacturing output fell 6.3%; most major industries posted decreases, with the largest decline registered by motor vehicles and parts," the Fed said. "The decreases for total industrial production and for manufacturing were their largest since January 1946 and February 1946, respectively." 

Market reaction

The US Dollar Index largely ignored these figures and was last seen adding 1.03% on the day at 99.88.