Industrial Production Increases 0.7% in April

Industrial production increased 0.7 percent in April after a decrease of 0.3 percent in March. Output in the manufacturing sector moved up 0.5 percent in April; the increase was led by advances in motor vehicles and parts and in high-technology goods.
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The output of utilities increased 3.5 percent; temperatures were relatively warm in March but fell below seasonal norms in April. Mining output decreased 0.3 percent in April. At 113.0 percent of its 2002 average, overall industrial production for April was 1.9 percent above its year-earlier level.
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The rate of capacity utilization for total industry rose 0.4 percentage point, to 81.6 percent, a level 0.6 percentage point above its 1972-2006 average.
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Market Groups
All major market groups recorded increases in April. The output of consumer goods rebounded 0.9 percent after having fallen 0.8 percent in March. Production of consumer durables expanded 2.1 percent in April.
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Apart from the strength in automotive products, the output of home electronics climbed 4.8 percent because of gains in computers produced for households and in audio and video equipment. Also within consumer durables, the indexes for appliances, furniture, and carpeting and for miscellaneous goods increased.
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Within consumer nondurables, the output of non-energy goods edged up 0.2 percent, as a decline in foods and tobacco was more than offset by increases in clothing, in chemical products, and in paper products. Among consumer energy products, an increase in residential sales by utilities outweighed a decline in the output of fuels.
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The output of business equipment moved up for a third consecutive month in April; an increase of 0.9 percent was led by gains in transit equipment and in information processing equipment.
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The rise of 1.9 percent in transit equipment was supported by increases in truck production and continued strength in civilian aircraft. Information processing equipment rose 0.9 percent because of output gains in electromedical equipment and in computers produced for businesses.
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The output of defense and space equipment rose 1.0 percent after having decreased 2.3 percent in March; this increase reflected a return to work in April at a shipyard affected by a recent strike. The output of construction supplies increased 0.4 percent in April. The output of business supplies advanced 0.7 percent because of strength in the production of medical supplies and in commercial sales of gas and electricity.
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The production of materials moved up 0.6 percent in April, as gains in both durable and energy materials outweighed a decline in nondurable materials. Within durables, the output of equipment parts rose 1.3 percent; the output of semiconductors advanced for a second consecutive month.
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  ; The output of consumer parts also increased 1.3 percent; the rise was boosted by increases in the indexes related to motor vehicle parts and steel. The production of other durables increased 0.5 percent.
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Within nondurable materials, the production of both textiles and chemicals fell, while the output of paper materials remained unchanged. The production of energy materials recovered 0.8 percent in April after having declined 2.4 percent in March.
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Industry Groups
Manufacturing output rose 0.5 percent in April, as a gain in the production of durables outweighed a decline in nondurables. The factory operating rate moved up 0.2 percentage point, to 80.2 percent. The production of durable goods rose 1.1 percent after an increase of 0.7 percent in March.
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Increases of more than 1.0 percent were recorded in the indexes for computer and electronic products; electrical equipment, appliances, and components; motor vehicles and parts; and miscellaneous manufacturing. These gains more than offset small

decreases in the indexes for nonmetallic mineral products, machinery, and furniture and related products.
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The index for nondurable manufacturing edged down 0.2 percent; declines occurred in the indexes for textile and product mills; food, beverage, and tobacco products; and petroleum and coal products. The decline of 2.8 percent in the production of petroleum and coal products resulted from an unusually high number of refinery shutdowns for seasonal maintenance.
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The production of non-NAICS manufacturing (logging and publishing) moved up 0.7 percent in April and reversed more than half of the decline seen over the first quarter.
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The output of natural gas utilities jumped 11.8 percent, and the output of electric utilities rose 2.0 percent. Mining production decreased 0.3 percent in April after having edged up 0.1 percent in March.
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Capacity utilization for industries in the crude stage of processing moved down 0.5 percentage point, to 88.8 percent, in April. Capacity utilization for industries in the primary and semifinished stages moved up 0.6 percentage point, to 82.1 percent, and capacity utilization for industries at the finished stage increased 0.5 percentage point, to 78.8 percent.