U.S. industrial production falls, factory use hits record low

The nation's industrial sector remains mired in the mud. Production at U.S. factories fell for the 16th time in the last 17th months -- with capacity utilization hitting a record low, the U.S. Federal Reserve announced Tuesday.

Output at U.S. factories declined 1.1 percent in May, the Fed said, with factory utilization falling to a record-low 68.3 percent from 69.1 percent in April. In addition, industrial production has now fallen 13.4 percent in the last 12 months-- the largest annual decline for the nation's industrial sector since 1946.