More strength for U.S. industrial output
WASHINGTON — American industry expanded production last month at the fastest pace in more than three years as manufacturers and mines recovered from a March downturn.
The Federal Reserve said Tuesday that industrial production at U.S. factories, mines and utilities shot up 1 percent in April from March, the biggest gain since February 2014 and the third straight monthly gain. The increase was more than twice what economists had expected.
Factory production rose 1 percent after declining 0.4 percent in March. Mine production increased 1.2 percent after falling 0.4 percent in March. And utility output rose 0.7 percent after surging 8.2 percent in March.
Factory production has risen three of four months this year. Manufacturing has recovered from a rough patch in late 2015 and early 2016 caused by cutbacks in the energy industry and a strong dollar, which makes U.S. goods costlier in foreign markets.
The overall U.S. economy grew at a lackluster 0.7 percent annual pace from January through March. But economists expect growth to pick up the rest of the year as consumers ramp up spending.
A separate report on residential construction was less encouraging.
The Commerce Department said home construction fell for a second straight month in April, marking the slowest pace in five months. Housing starts slid 2.6 percent to a seasonally adjusted annual rate of 1.17 million units. The weakness was led by a big drop in construction of apartments, a volatile sector.
While disappointing, the home report didn’t appear to weigh much on the stock market.
A subdued day of trading on Wall Street ended Tuesday with stocks closing mostly lower even as the Nasdaq composite notched another record high.