- AP/Daniel R. Patmore
Industrial production jumped 0.7% in April, more than expected. This is only the second positive reading since last September.
The Federal Reserve’s data out Tuesday also showed that capacity utilization was 75.4%.
Economists had forecast that industrial production rose 0.3% month-on-month following a 0.6% drop according to Bloomberg.
Demand for electricity and natural gas climbed to a more normal level after unseasonably warm weather in March reduced the need for heating. This led utility production up 5.8% month-on-month, the most since 2007.
Manufacturing production rose 0.3%, while mining declined yet again, by 2.3%.
Capacity utilization was estimated at 75%.
“These data overall will not shift the needle at the Fed; the industrial economy is strong enough for inflation hawks to remain hawkish and weak enough for doves to remain dovish,” said Pantheon Macroeconomics’ Ian Shepherdson.
“The battle at the next FOMC will be fought over the labor market and inflation numbers.”