Rising US auto manufacturing fuels industrial production in April

The Federal Reserve said Tuesday that US industrial output increased in April, owing to the ongoing expansion of auto manufacturing.

According to the data, total industrial production grew 1.1 percent in April, the fourth straight monthly increase — and double what analysts expected — while motor vehicle output increased 3.9 percent.

US industry, including automakers, had been struggling to keep up with strong demand amid strains in the global supply chain, notably a shortage of critical computer chips, as well as the struggle to find workers.

Factory output increased 0.8 percent, but excluding autos was up only 0.5 percent, while utilities rose 2.4 percent, according to the data.

Rubeela Farooqi, chief US economist at High-Frequency Economics, said the upside surprise showed “manufacturing activity continues to expand even as supply chain disruptions and shortages remain headwinds.”

Mining, including oil production, rose 2.6 percent but is still 3.8 percent below its pre-pandemic level, according to the Fed data.

Gains were seen in a variety of categories, including electronics and food, while reductions were limited to appliances, furniture and carpeting, plastics and rubber, and semiconductors.

According to the data, total industrial production is up 6.4 percent from April 2021.