Car manufacturing, AI investments sparked April production growth

Industrial production increased 0.7 percent last month amid growth in motor vehicle manufacturing and high-tech equipment for artificial intelligence data centers, according to the Federal Reserve. The increase followed a 0.3 percent decrease in March..Manufacturing output increased 0.6 percent, while the mining index ticked down 0.1 percent. Utilities output increased nearly 2 percent amid a significant increase in demand for consumer and commercial energy and the need to power AI data facilities. The production of durables rose 1.2 percent in April, growth sparked by a 3.7 percent increase in motor vehicles and parts. Nondurable manufacturing production slipped 0.1 percent amid declines in chemicals and for plastics and rubber products. Manufacturing output not including motor vehicles and parts increased 0.3 percent. Total industrial production was 1.4 percent higher than its year-earlier mark, and 102.5 percent of its 2017 average. Capacity utilization was 3.3 percentage points under its long-term mark, at 76.1 percent. “The major market groups posted mostly positive results in April,” according to the Federal Reserve. “The production of consumer goods moved up 0.9 percent, with gains in both durable and nondurable consumer goods.” Other report findings included:Defense and space equipment output increased 1.9 percent. While the output of construction supplies was stagnant, business supplies output increased 0.3 percent. The materials index increased 0.5 percent, led by rises in the output of durable materials and energy materials. The output of non-energy nondurable materials fell. A 4.2 percent rise in transit equipment sparked a 1.5 percent growth in business equipment.