US industrial production fell 0.5% in March, worse than the 0.1% growth forecast and marking a significant slowdown after February's upward revision to 0.7% growth. The decline reflects softening manufacturing and utility output in the wake of the Iran conflict, signaling tighter economic conditions ahead. This miss is particularly notable because February was revised sharply upward—suggesting the underlying trend is weaker than initially thought—while March's decline raises questions about whether the early-year momentum has already stalled.