Industrial Output Increased In April Production Has Increased 11 Consecutive Months. The Report May Prompt The Fed To Raise Rates.

FROM INQUIRER WIRE SERVICES
Posted: May 17, 1994

WASHINGTON — American industry boosted production in April and kept running at the highest rate in nearly five years, the Federal Reserve Board said yesterday in a report viewed as a solid sign of economic strength.

On the eve of what could be an important decision on interest rates, the Fed said industrial production rose 0.3 percent last month, following a 0.5 percent gain in March. Monthly output has now risen in an unbroken chain that started in June. The overall increase for April was tempered, however, by a decline in automotive production.

The industrial production report underscored the rising tempo of economic activity that is expected to prompt the Fed to raise interest rates today, the fourth time this year.

Businesses, including factories, mines and utilities, ran at 83.6 percent of their capacity in April, the same rate as in March and the highest since June 1989.

The manufacturing advance was slowed by what analysts said was an inevitable cutback in auto and truck assembly lines from peak capacity.

Carmakers cut their rate of assemblies for new cars to 6.9 million a year in April from 7.2 million in March and reduced light truck assemblies to an annual rate of 5.3 million from 5.4 million.

Gains in the output of fuels and clothing helped boost nondurable goods 0.3 percent despite a decrease in food production, after a 0.8 percent rise in March.

Durable goods, big-ticket items expected to last at least three years, rose 0.4 percent after advancing 0.6 percent in March.

Index by Keyword
|
Index by Date
|
About Philly.com
|
Contact Us
|
Terms of Use & Privacy Statement
|
Copyright 2013