U.S. Factory Output Rises 0.6% in April as Auto Production Surges

U.S. manufacturing output accelerated in April 2026, rising 0.6% as motor vehicle production jumped, the Federal Reserve said May 15, signaling underlying strength in the factory sector despite supply risks tied to the war with Iran. The gain followed an upwardly revised 0.1% increase in March and beat the 0.2% rebound expected by economists polled by Reuters. Factory production was up 1.3% from a year earlier in April. Motor vehicle output rose 3.7%, driving much of the monthly increase. The data suggest manufacturing momentum improved at the start of the second quarter, though potential supply disruptions remain a risk for production and input costs.