US manufacturing output accelerates on auto production in April

U.S. factory production accelerated in April, led by a surge in motor vehicle output, pointing to underlying strength in manufacturing. However, supply disruptions tied to the war with Iran are creating a headwind for the sector. The report is broadly neutral with a modestly positive read-through for industrial activity, offset by geopolitical supply risks.

Analysis

U.S. factory production accelerated in April, led by a surge in motor vehicle output, pointing to underlying strength in manufacturing. However, supply disruptions tied to the war with Iran are creating a headwind for the sector. The report is broadly neutral with a modestly positive read-through for industrial activity, offset by geopolitical supply risks.