U.S. industrial production rose in April by the most in over a year, pointing to nascent momentum in the sector.

The 0.7% increase in output at factories, mines and utilities followed a revised 0.3% drop in March, Federal Reserve data released on May 15 showed. That topped all estimates in a Bloomberg survey of economists.

Manufacturing output, which accounts for about three-fourths of total industrial production, climbed 0.6%. Mining output, which includes energy extraction, edged lower, while utilities output rebounded.

The report adds to evidence that the manufacturing sector is holding up even as the Iran war and tariffs drive up input costs, thanks in part to tax cuts and the tailwind from the data center boom. Still, some of the strength may reflect stockpiling in an attempt to get ahead of additional price increases.

With a fragile truce in place and the Strait of Hormuz still effectively closed, manufacturers may face even higher costs for key items like fuel and other materials in the months to come. Even if the Strait reopens soon, economists anticipate inflation is likely to persist as oil output normalizes and shipping flows recover.

By industry, manufacturing output was led by an increase in motor vehicle and parts, which rose 3.7%. Computers and electronic products, aerospace and nonmetallic mineral products also recorded solid gains.