Industry Output Increased 0.4% During April --- First Advance in 4 Months Doesn't Dispel the Belief Overall Pace Is Slowing
WASHINGTON -- American industry cranked up a bit in April after a few months of flat or declining production, the Federal Reserve reported, but many economists remained convinced that the industrial sector is slowing its rapid pace.</br></br>The nation's factories, mines and utilities increased their output last month 0.4%, the first advance in four months, the central bank said. Moreover, they used more of their capacity than in the previous month -- 83.9%, up from 83.7% -- the first time the operating rate has risen since December.</br></br>Despite the growth, economists saw little evidence that the industrial sector is rebounding to its strength of late last year, when factory operating rates reached a 10-year high.</br></br>"It is slowing," said Thomas Runiewicz, an industrial economist at the WEFA Group, a forecasting and consulting firm in Bala Cynwyd, Pa. "When you look at the last three months, this was somewhat up, but it wasn't any real eye-opener."</br></br>The Fed also revised some of its recent industrial statistics, adding to the picture of a slackening economy. According to the new calculations, industrial production actually fell 0.3% in February instead of holding at its January level, as the central bank initially reported. Moreover, the industrial operating rate in March was three percentage points below the 84% of capacity originally given.