US Coin Production Nosedives in Q1 2024 amid Economic Woes

The United States Mint produced over 1.73 billion circulating coins in the first quarter of 2024, marking a significant decrease compared to the previous year. March saw a production of only 332.7 million coins, with a notable decline in the minting of Lincoln cents, Jefferson nickels, and Roosevelt dimes. The Mint also struck 7.6 million Kennedy half-dollars and 2.24 million Native American dollars, while production of the Rev. Dr. Pauli Murray quarter reached 354.2 million.

U.S. Coin Production Plunges in Q1 2024 Amidst Economic Uncertainty

The United States Mint has witnessed a dramatic slowdown in coin production during the first three months of 2024, marking the lowest quarterly output since 2010. This deceleration, driven by a sharp decline in Federal Reserve orders, has raised concerns about the impact of economic uncertainty on the nation's currency supply.

March Production Slump

During March, the Mint produced just 332.7 million coins for circulation, representing a 48.4% decrease from February and a staggering 72% decline compared to March 2023. This monthly production rate fell below the 1 billion mark for the seventh consecutive month, a stark contrast to the preceding eight months that comfortably exceeded that threshold.

Driving Forces Behind the Production Slowdown

The primary factor behind the production slowdown is the reduced demand from the Federal Reserve, which is responsible for ordering and distributing coins throughout the financial system. The Federal Reserve's decision to order fewer coins reflects its ongoing efforts to manage currency supply and respond to the evolving economic climate.

Monthly Production Comparison

A comparison of March 2024 circulating coin production with the previous year reveals a significant drop across all denominations:

• Lincoln cents: decreased by 53.7%
• Jefferson nickels: 100% decrease (no coins produced)
• Roosevelt dimes: 100% decrease (no coins produced)
• Quarters: increased by 13.6%

Production of Kennedy Halves and Native American Dollars

In addition to the circulating coins produced for everyday use, the Mint also strikes half dollars and dollars for collectors. Native American $1 coins are no longer requested by the Federal Reserve but are still minted for collectors. Kennedy half dollars have followed a similar pattern until recently, with the Federal Reserve unexpectedly ordering millions more for circulation in the past three years.

However, for 2024, the production of Kennedy half dollars for general circulation remains uncertain. Initial mintage figures reported a total of 7.6 million coins, significantly lower than the 58 million produced in 2023. The Mint has not released any additional information on whether further production of Kennedy halves will occur.

Regarding Native American dollars, their mintage figures underwent adjustments in February and March. The current total stands at 2.24 million coins, matching the production in 2023. The Mint has not reported any further changes for this denomination.

Circulating Coin Production by Facility

During March, the Denver Mint produced 201.3 million coins, while the Philadelphia Mint produced 131.4 million coins, resulting in a combined total of 332.7 million coins.

First Quarter 2024 Production

The first quarter of 2024 witnessed a significant decline in coin production compared to the same period in 2023. The Denver Mint produced 912.88 million coins, and the Philadelphia Mint produced 820.66 million coins, for a combined total of 1,733,540,000 coins. This represents a substantial 49.6% decrease from the previous year's first quarter output of 3,442,560,000 coins.

Projected Annual Mintage

If the current production pace continues through December, the annual mintage for 2024 would reach an estimated 6.9 billion coins. This projection is significantly lower than the over 11.38 billion coins produced in 2023 and would mark the lowest output since 2012.

American Women Quarters™: Rev. Dr. Pauli Murray Quarter

Alongside the production of circulating coins, the Mint has also released the first two issues in its four-year American Women Quarters™ program. The first quarter, featuring Rev. Dr. Pauli Murray, entered circulation on January 2, with a total of 354.2 million coins minted. However, this figure represents the lowest mintage total for any quarter in the series to date.

Conclusion

The dramatic slowdown in U.S. coin production during the first quarter of 2024 is a testament to the evolving economic landscape and the Federal Reserve's cautious approach to currency management. While it remains uncertain whether this trend will continue throughout the year, the Mint continues to monitor demand and adjust its production accordingly. The ongoing production of coins for circulation and collecting purposes is a critical component of the nation's financial infrastructure and underscores the importance of a stable and efficient currency system.