Washington, DC, May 14--U.S. industrial production rose 0.8 percent in April--the seventh increase in the last eight months--as companies made more semiconductors, computers, furniture and appliances, a Federal Reserve report showed.
The increase in production at the nation's factories, mines and utilities last month follows a revised 0.1 percent decrease in March. The proportion of industrial capacity in use rose to 76.9 percent, the highest since July 2001, from 76.5 percent.
Factory payrolls rose last month by the most in almost four years as rising order backlogs and lengthening delivery times prompted managers to boost hiring. Record low inventories relative to sales and exports at an all-time high are triggering the bottlenecks, encouraging manufacturers to boost production to try to keep pace.
Economists had expected a 0.5 percent increase in industrial production, according to the median of 70 forecasts in a Bloomberg News survey, following March's previously reported 0.2 percent decline.
Work at factories, which accounts for almost 90 percent of industrial production, rose 0.7 percent last month after rising 0.1 percent in March. Production of consumer durable goods, which includes automobiles, furniture and electronics, rose 0.5 percent after decreasing 0.8 percent the previous month. The increase was led by a 2.9 percent jump in production of furniture and appliances.
Production of autos and parts was unchanged in April after declining 1.1 percent in March.
Business equipment production, which includes transportation and information processing equipment, rose 0.5 percent in April after decreasing 0.1 percent the previous month. Production of technology equipment, such as computers, communications gear, and semiconductors, rose 1.7 percent last month after increasing 1.3 percent. Semiconductor production rose 2.5 percent, and computer output increased 2.4 percent.
The 4.8 percent gain in industrial production over the past 12 months is the biggest since a 5.7 percent gain over a similar period ending in June 2000.
