U.S. April Industrial Production - Led by a bounce in autos, but underlying trend positive
Following an upbeat Empire Sate manufacturing survey for May, April industrial production gives further evidence that the manufacturing sector is in good health, rising by a stronger than expected 0.7% overall with a 0.6% increase in manufacturing, though half of the latter came from autos.
The weather-sensitive utilities sector provided additional support, rising by 1.9% after a 1.6% decline in March. Mining with a 0.1% decline has yet to show a response to higher energy prices.
The volatile auto sector led the manufacturing increase, rebounding from a dip in March, but manufacturing output ex autos rise by a moderate 0.3%, matching the March gain and a fourth straight similar increase.
This is consistent with a move in the ISM manufacturing index significantly above neutral in January and remaining there through April. Business equipment was particularly strong, rising by 0.8%, a positive signal for business investment.
