US Manufacturing Output Rises more than Expected in April

In April, factory output in the United States climbed more than predicted, owing to the ongoing high demand for automobiles and other items, which should support manufacturing activity. The Federal Reserve said on Tuesday that manufacturing production grew 0.8 percent in April after a similar increase in March.

Factory output was expected to rise 0.4 percent, according to economists polled by Reuters. When compared to April 2021, output increased by 5.8%. However, due to Russia's invasion of Ukraine and China's zero-tolerance COVID-19 policy, manufacturing, which amounts to 12% of the economy, is facing new supply chain constraints.

In April, the Institute for Supply Management's national manufacturing activity indicator fell to a 1-1/2-year low. Factory activity in New York state decreased for the third time this year in May, according to a survey released by the New York Fed on Monday. Since the Fed began raising interest rates in March, the dollar has gained at least 2.7 percent versus the currencies of the United States' biggest trading partners, which could hamper export demand and damage manufacturing.

After increasing by 8.3% in March, auto production grew by 3.9 percent last month. Only nonmetallic mineral products, electrical equipment, appliances and components, furniture and related products saw declines in the durable goods sector.