The 0.9 per cent increase in March followed a 1.2 per cent gain in February, Federal Reserve data showed.
US factory production rose in March by more than forecast, marking the third straight month of gains that show steady progress for manufacturers against a backdrop of gradually improving supply chains.
The pickup in March manufacturing output was broad and included a 7.8 per cent surge in production of motor vehicles. Assemblies rose to an annualised 9.75 million units, the most since January of last year.Manufacturing output increased at an annual rate of 5.4 per cent in the first quarter. Total production grew an annualised 8.1 per cent, the strongest since the end of 2020.
Still-firm orders growth, helped by solid business investment, remains a source of strength for domestic producers. A sharp pickup in motor vehicle assemblies shows stresses in supply chains continue to abate.At the same time, soaring materials costs continue to complicate the industrial recovery. Progress on supply chains may also be limited in part by Russia’s war in Ukraine and strict pandemic-related lockdowns in areas of China represent new risks.
The pickup in March manufacturing output was broad and included a 7.8 per cent surge in production of motor vehicles. Assemblies rose to an annualised 9.75 million units, the most since January of last year. Excluding autos and parts, factory output increased 0.4 per cent.