U.S. factory production rose 0.5% in April
May 17, 2018 by Christopher Rugaber The Associated Press
May 16, 2018 – U.S. factories cranked out more appliances, computers and aircraft last month, lifting manufacturing production for only the second time in five months.
The Federal Reserve said Wednesday that factory output rose 0.5 per cent in April after a flat reading in March. In the past year, production has increased a modest 1.8 per cent.
A broader measure of industrial production, which includes mining and utilities, rose 0.7 per cent. Mining output, lifted by higher oil prices, jumped 1.1 per cent. Utilities output rose 1.9 per cent.
U.S. manufacturers have benefited from solid consumer spending, while also facing uncertainty because of steel and aluminum tariffs imposed by the Trump administration. The production of electrical equipment and appliances rose 1.5 per cent last month, while the output of steel and other metals fell 0.5 per cent.
The figures suggest that business spending may be picking up after lagging earlier this year. Congress passed a steep corporate tax cut last year intended to lift business investment in machinery and equipment, which can make the economy more productive.
Production of industrial machinery jumped 2.3 per cent in April, the most in seven months. That followed three months of declines. The output of computers climbed 1.2 per cent last month.
Carmakers, meanwhile, slashed production 1.3 per cent in April after two months of strong gains. Auto sales have slowed after residents of Texas, Florida and other hurricane-hit areas replaced storm-damaged cars last fall.
Oil drilling companies have sharply ramped up production in the past year as oil prices have moved higher and now top $70 a barrel. That has boosted mining production 10.6 per cent compared with a year ago.
Other measures of manufacturing suggest it is growing, but at a slower pace. A survey of manufacturing purchasing managers found that measures of new orders, production and jobs grew more slowly in April.