U.S. Industrial Production Rose 0.7 Percent in April

U.S. industrial production rose 0.7 percent in April, beating economists' expectations of a 0.3 percent gain and surpassing even the highest private forecasts. The increase lifted the annual growth rate to 1.35 percent. March's previously reported decline was revised higher.

Manufacturing output rose 0.6 percent after edging up 0.1 percent in March. Production of durable goods increased 1.2 percent, led by a 3.7 percent jump in motor vehicles and parts. Nondurable manufacturing production edged down 0.1 percent. Declines in chemicals and in plastics and rubber products, both falling 0.9 percent, were largely offset by gains in food, beverage and tobacco products as well as in petroleum and coal products.

Mining output edged down 0.1 percent in April after a 1.6 percent drop the prior month. Utilities output increased 1.9 percent, with gains recorded in both electric and natural gas utilities.

York state factory activity expanded in May at the fastest pace in four years, according to the Empire Fed survey. Firms also grew more optimistic about the outlook. The survey release preceded the industrial production data by hours. Capacity utilization rose to 76.1 percent in April from the prior month, exceeding the forecast of 75.8 percent.

The improvement suggests factories, mines and utilities operated closer to full capacity.

The stronger production and factory data arrived despite consumer sentiment remaining near record lows. One report questioned why production, factory activity and retail sales were picking up even as sentiment measures stayed weak. The industrial production report comes from the Federal Reserve but specific officials were not named in coverage of the release.

Details were first reported by Bloomberg.

“April's gain for US industrial production was the largest since February 2025." — Bloomberg, May 15, 2026 Manufacturing output has now advanced for two consecutive months after earlier weakness. The motor vehicle sector provided the largest single contribution to April's headline gain.”