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Autos and Tech Lift U.S. Manufacturing to Biggest Monthly Gain Since 2025

Worsening delivery times tied to Middle East shipping attacks pose near-term risks.

Overview

  • The Federal Reserve reported Friday that industrial production rose 0.7% in April, the largest monthly increase since February 2025.
  • Factory output increased 0.6%, led by a 3.7% jump in motor vehicles and a 1.0% rise in high-technology industries tied to computers, chips, and communications gear.
  • U.S. motor vehicle assemblies reached a 10.69 million annual rate in April, the highest since mid-2025, according to the Fed’s G.17 report.
  • A New York Fed survey showed supplier delivery performance in May deteriorated, reflecting shipping disruptions from the U.S.-Israeli conflict with Iran.
  • Producer prices accelerated in April to a four-year high, and oil prices climbed Friday after comments by President Donald Trump and Iran’s foreign minister reduced hopes for a deal on shipping attacks.