Northwest Arkansas Democrat-Gazette
Factory output picks up
Computers among gainers; automakers’ production slows.
WASHINGTON — 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 percent in April after a flat reading in March. In the past year, production has increased a modest 1.8 percent.
A broader measure of industrial production, which includes mining and utilities, rose 0.7 percent. Mining output, lifted by higher oil prices, jumped 1.1 percent. Utilities output rose 1.9 percent.
U.S. manufacturers have benefited from solid consumer spending, while also facing uncertainty because of steel and aluminum tariffs imposed by President Donald Trump’s administration. The production of electrical equipment and appliances rose 1.5 percent last month, while the output of steel and other metals fell 0.5 percent.
The figures show that business spending may be picking up after lagging earlier this year. Congress last year passed a corporate tax cut intended to lift business investment in machinery and equipment, which can make the economy more productive.
Production of industrial machinery jumped 2.3 percent in April, the most in seven months. That followed three months of declines. The output of computers climbed 1.2 percent last month.
Carmakers, meanwhile, slashed production 1.3 percent 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 increased production in the past year as oil prices have moved higher, now topping $70 a barrel. That has boosted mining production 10.6 percent 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.
The factory-use rate rose to 75.8 percent — the highest since August 2015 — from 75.5 percent a month earlier. That’s still 2.5 percentage points below its long-run average.
The overall results bolster the view that industry — along with consumer spending — will contribute to a projected second-quarter rebound in economic growth. At the same time, rising prices for materials and tariffs on imported metals, along with U.S.-China trade tensions, pose risks for American manufacturers.