U.S. industrial production rose in April at the fastest pace in more than a year, powered by a broad manufacturing gain led by autos and supported by strong output from computers, electronics, and other industries seeing renewed demand due to investments in artificial intelligence.
Industrial production rose 0.7 percent in April, the Federal Reserve said Friday, reversing a revised 0.3 percent decline in March. The increase was the largest since February 2025 and lifted total industrial output to its highest level since August 2019.
Manufacturing output, which accounts for about three-quarters of total industrial production, climbed 0.6 percent. That was also the strongest monthly gain since February of last year. Factory output has now risen for four consecutive months and is at its highest level since April 2022.
Both the overall figure and the manufacturing figure exceeded even the most optimistic estimates of economists.
The April gain was concentrated in durable goods, where output jumped 1.2 percent. Production of motor vehicles and parts surged 3.7 percent, making autos the single largest driver of the manufacturing increase. Motor vehicle output climbed 5.3 percent, while motor vehicle parts rose 2.6 percent.
But the strength was not confined to autos. Computer and electronic products rose 1.5 percent, one of the strongest gains among major manufacturing categories. Output of computer and peripheral equipment rose 1.5 percent, while semiconductor and other electronic components climbed 1.0 percent. Communications equipment increased 0.6 percent.
The Fed’s special aggregate category for computers, communications equipment, and semiconductors rose 1.0 percent in April, underscoring the growing role of tech manufacturing in the broader industrial expansion. Business equipment tied to information processing and related products rose 1.7 percent, a sign that the data-center and artificial-intelligence buildout is showing up in factory output.
Other parts of the durable-goods sector also advanced. Machinery output rose 0.6 percent, fabricated metal products increased 0.6 percent, and electrical equipment, appliances, and components rose 0.4 percent.
The breadth of the gain was visible even after stripping out the largest drivers. Manufacturing excluding motor vehicles and parts rose 0.3 percent. Manufacturing excluding selected high-tech industries and motor vehicles also increased 0.3 percent.
Outside manufacturing, utilities output rebounded 1.9 percent, helping lift the overall industrial production index.
Mining output slipped 0.1 percent, held down in part by a second straight decline in oil and gas well drilling. The decline in drilling does not mean oil and gas output fell. The Fed’s drilling index tracks well-drilling activity, which tends to respond with a lag to higher prices, while actual oil and gas extraction was essentially flat in April. Production is likely to rise, particularly if recent high prices are sustained. The production of mining and oil and gas field machinery jumped 2.95 percent, suggesting U.S. energy companies are preparing to expand domestic output.
Capacity utilization also rose. The overall industrial utilization rate increased to 76.1 percent, while manufacturing capacity utilization climbed to 75.7 percent, the highest since September. That is even more impressive because capacity itself—the ability of U.S. plants to produce manufactured goods—is also rising.
The report points to a factory sector gaining momentum after a long period of stagnation. Total manufacturing output is up 1.7 percent since December, with gains in each of the first four months of the year. Durable-goods production has been the clear leader, reflecting a combination of stronger vehicle output, renewed demand for business equipment, and the continuing expansion of tech-related manufacturing.
For now, the April report shows an industrial sector with more breadth than the headline alone suggests. Autos led the surge, but the same report showed strong gains in computers, electronics, semiconductors, information-processing equipment, machinery, fabricated metals, and electrical equipment—the industrial backbone of the AI-era capital spending boom.
Two of President Trump’s signature policies are helping support the U.S. manufacturing renaissance. Changes to the tax code put in place as part of last year’s One Big Beautiful Bill allow companies to immediately expense many capital investments, reducing their after-tax cost. Prior to the change, companies often had to stretch deductions over several years, creating a mismatch between actual spending and taxable income. At the same time, the administration’s support for domestic manufacturing—exemplified by tariffs and deregulatory policies—has strengthened incentives to source equipment, components, and materials from U.S. producers as companies build out new data centers and other industrial projects.
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