US

US Manufacturing Output Plunges To Record Low, According To Fed

REUTERS/Timothy Aeppel

Jake Mercier Contributor
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Manufacturing output in the United States dropped by a record 13.7 percent in April, according to a Friday report by the Federal Reserve System, in addition to an 11.7 percent drop in domestic industrial production — the largest drop in more than a century as the coronavirus outbreak continues to disrupt supply chains and ravage the world economy.

Domestic industrial output was previously hit by 5.5 percent in March and has continued to plummet as factories across the country have had to slow or stop production amid coronavirus restrictions. (RELATED: Senate Republicans Mobilizing To Confront China, Including Investigations, Sanctions And ‘Seizure Of Chinese Government Assets’)

This news comes as a similar government report shows a 16.4 percent drop in U.S. retail sales, with many mom-and-pop stores and outlets suffering, while online shopping through Amazon increased by 8.4 percent.

These developments come as some in Washington, including President Donald Trump, have begun to question U.S. reliance on overseas supply claims, particularly in China, and hope to revitalize the domestic manufacturing sector.

Bloomberg reports that these grim numbers indicate “a recession so deep that it will likely take years to fully recover.”