The jump in U.S. manufacturing was broad-based and included the largest surge motor vehicles and parts production since July 2015, according to the Fed. Output also picked up for consumer goods and business equipment, two sources of strength for the economy. With brighter global growth prospects, signs that businesses are more open to investment, and a firm labor market that’s underpinning consumer demand, output may stay strong in coming months.
Utility output rose 0.7 percent after an 8.2 percent surge in March; the contiguous U.S. had the warmest April since 2012, according to National Oceanic and Atmospheric Administration data.
Production of motor vehicles increased 5 percent; excluding autos and parts, industrial production rose 0.7 percent for a second month. Manufacturing output excluding vehicles and parts also rose 0.7 percent in April.
Enjoy curated articles directly to your inbox.