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HomeNewsEconomyIndustrial Production Strong, Gaining for Third Straight Month in April

Industrial Production Strong, Gaining for Third Straight Month in April

The massive Big John dragline reshapes the rocky landscape in some of the last sections to be mined for coal at the Hobet site in Boone County, West Virginia. (Photo: Reuters)
The massive Big John dragline reshapes the rocky landscape in some of the last sections to be mined for coal at the Hobet site in Boone County, West Virginia. (Photo: Reuters)

The massive Big John dragline reshapes the rocky landscape in some of the last sections to be mined for coal at the Hobet site in Boone County, West Virginia. (Photo: Reuters)

The Federal Reserve said industrial production rose 0.7% in April, slightly beating the consensus forecast and posting gains for the third consecutive month.

Mining, which has been the strongest component in the report, once again leads the way with a 1.1% increase for the month. That puts the year-on-year volume gain for mining output at 10.6%.

Production of consumer goods is close behind with a 0.9% gain.

Manufacturing production rose 0.5% in April to beat the consensus forecast by 0.2. That comes despite the 1.3% drop in vehicle production and puts the year-on-year in manufacturing output is up 1.8%.

Worth noting, volumes in business equipment rose 1.2%, which indicates a strong second-quarter for business investment.

Utilities is also very positive at a gain of 1.9%, making the yearly gain for utilities 6.0%.

Construction has not been phased by tariffs, as construction supplies rose 0.3% in the month.

The rates of change for industrial production for previous months were revised downward. For the first quarter (1Q), output advanced at a 2.3% annual rate.  After being unchanged in March, manufacturing output rose 0.5% in April.

The indexes for mining and utilities moved up 1.1% and 1.9%, respectively. At 107.3 percent of its 2012 average, total industrial production in April was 3.5% higher than it was a year earlier.

Capacity utilization for the industrial sector climbed 0.4% point in April to 78.0%, a rate that is 1.8% below its long-run (1972–2017) average.

Written by
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