By Xavier Fontdegloria
Industrial production in the U.S. rose in April for a fourth consecutive month led by a jump in auto production as well as higher utilities and mining output despite continued supply-chain snarls and high costs.
Industrial production--which includes factory, mining and utility output--increased 1.1% in April on month, accelerating from a 0.9% rise in March, data from the Federal Reserve showed Tuesday.
Economists polled by The Wall Street Journal expected industrial output to expand 0.5% in April on month.
The increase in industrial activity was driven by a 0.8% advance in the key manufacturing sector, although utilities and mining output also contributed to the rise. Output of motor vehicles and parts increased for a second consecutive month, by 3.9%, in a sign that the supply-chain bottlenecks that have hampered the sector for months continued to ease.
Excluding the gain in the auto sector, factory output rose 0.5% on month, the Fed said.
The U.S. industrial sector has remained resilient as demand for goods is strong and business need to replenish depleted inventories. Supply-chain disruptions have been constraining production and are likely to continue to do so in the months ahead amid factory closures in China and the war in Ukraine.
The current policy tightening cycle in the U.S. also could slow demand for goods, but the need to meet order backlogs should keep factories busy in the short-term, economists say.
In April, utilities output rose 2.4% as electricity and natural-gas consumption increased on month due to slightly cooler temperatures, while mining output advanced 1.6% driven by oil and gas extraction.
Capacity utilization, which reflects how much industries are producing compared with what they could potentially produce, rose by 0.8 percentage points to 79% in April.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
05-17-22 0952ET
