Factory shutdowns near WWII demobilization levels in U.S.

In this April 13, 2020 file photo, a worker wears a mask as he cleans up an area outside an entrance at Boeing Co.'s airplane assembly facility in Everett, Wash., north of Seattle. American industry collapsed in March as the coronavirus pandemic wreaked havoc on the U.S. economy. Manufacturing and overall industrial production posted the biggest drops since the United States demobilized after World War II. (AP Photo/Ted S. Warren, File)

The lockdowns and travel restrictions imposed to combat COVID-19 have brought economic activity to a near-standstill. Output dropped 3.9% at utilities and 2% at mines as oil and gas drilling plunged, the Fed said.

Factories were running at 70.2% of capacity last month, down from 75.1% in February and lowest since 2010 when the U.S. economy was still recovering from the 2007-2009 Great Recession.

“The outlook is bleak for the industrial sectors,″ James Watson and Gregory Daco at Oxford Economics wrote in a research note. “With the global coronavirus recession leading to a sudden stop in activity at home and around the world, factory output is likely to fall even further in April. Major supply chain disruptions, reduced energy activity and tighter financial conditions will continue to represent major headwinds in the coming months.″ They say industrial production could drop 15% overall.