Auto Production Boosts Overall US Output
April surge stands out among industries as economy absorbs interest rates drag.
Motor vehicle and parts production jumped 9.3% following a decrease of nearly 2% in March.
IMAGE: Ford
Automotive manufacturing boosted overall U.S. industrial production in April, which rose for the first time in two months, the Federal Reserve reported.
Industrial output increased 0.5%, and manufacturing rose 1% on the tails of a “strong gain” in motor vehicles and parts output. Without the automotive contribution, manufacturing production rose 0.4%.
Motor vehicle and parts production jumped 9.3% following a decrease of nearly 2% in March.
An 8.4% increase in automotive products output propped up overall consumer durables production, the Fed said.
Production in general has been impacted by continually rising interest rates and their effect on consumer demand.
Automotive inventory, though, has increased in recent months as pandemic-caused supply constraints have started to loosen, making purchases more affordable than they were during the Covid crunch.
LEARN MORE: New-Vehicle Inventory at Two-Year High
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