US Factory Output Rises Most in 14 Months on AI Demand
US factory output rose 0.6 percent in April as AI demand and auto production offset supply risks. Middle East conflict strains shipping and energy costs.
United States factory production rose 0.6% in April, the largest monthly increase in 14 months driven by motor vehicles and technology. It marks a recovery from a revised 0.1% gain in March and exceeds the 0.2% growth predicted by Reuters economists. The data signals manufacturing resilience as artificial intelligence investment offsets supply chain disruptions caused by conflict in the Middle East.
### AI and Auto Demand Drive Factory Gains Motor vehicle and parts output jumped 3.7% in April, leading the broader manufacturing sector to a 1.3% year-over-year advance. High-technology industries rose 1.0% as businesses invested billions in AI infrastructure, with computer equipment production increasing 1.5% for a second consecutive month. Manufacturing now accounts for 9.4% of the national economy.
